A letter was posted on NYTimes.com (contents are included below).  Please read it.  It is a letter from an AIG employee (now former) Jake DeSantis to Edward Liddy.
I know I have had the opinion that bonuses to the employees at AIG are absurd, especially in the amount specified.  I hadn’t thought the whole thing out [...]

Lately we have been hearing a great deal of fuss made by financial companies who have received government bailout money, that their activities and trades are proprietary information. To release this information would put the banks at risk.
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The primary problems with the banks argument are three fold:
First – the taxpayers are the owners, [...]

When you’re forced to restructure a bailout, which was supposed to be used for restricting, it’s hard to justify even to yourself that throwing good money at a problem is the answer. In terms of AIG, the federal government really needs to take a few steps backwards and figure out how it can unwind that [...]

There is an old feeble that we read to children in the hopes of teaching them a lesson about life; A little boy scrams out that he saw a wolf, just to get everyone’s attention. After doing it a few times, and having all the towns people come to his rescue the town’s people catch [...]

Alan Kohler, of Business Spectator, wrote an article A tsunami of hope or terror?.  The article covers what will happen if more companies go under.
The Breakdown:

A synthetic CDO cataclysm could save the global banking system (with horrible consequences)
Investors and funds worldwide will be collateral damage
Banks paid external entities (usually Cayman companies, or charities) to back [...]

Today, Monday, November 10, 2008 — we have been having great news from everywhere.  Circuit City announcing bankruptcy, another $40 billion for AIG (guess it’s good news for them?), and now we have 2 more bank failures.
CNN Money reports, 2 more banks go belly-up, as Franklin Bank (of Houston) and Security Pacific Bank (of California) [...]

The history:

The F.A.Q.’s of Lehman and A.I.G. – Douglas W. Diamond and Anil K. Kashyap
Who needs a Bailout Bill: Federal Reserve bleeds out $410 Billion
AIG already spent $61 billion of the $85 billion
AIG officially asks for more money, $37.8 billion
AIG Borrows from government AGAIN! $20.9 billion now
Steal from Peter to pay Paul. AIG using Fed [...]

American International Group Inc (NYSE: AIG 1.87 11/06/08), the insurer saved from bankruptcy by a federal bailout, has reduced the amount it owes the U.S. government for the second week in a row, according to Federal Reserve figures.
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Breakdown:

AIG owns $81.2 billion under two emergency facilities from the Fed

The company from filing for bankruptcy in September

That [...]

Just this morning we had asked, “Why does the government seem to be getting the worst deals here?” in our posting, AIG Borrows from government AGAIN! $20.9 billion now
Now we wanted to publish a link to Paulson’s Swindle Revealed published on The Nation by William Greider.
It just keeps getting better.

In this article on the New York Times Dealbook, A.I.G. Borrows Another $20.9 Billion From the Fed — you can read the details.
When are we going to slow this down?  A.I.G. now has approximately $104.4 Billion of our money.  Fortunately they have reduced their debt from $90.3 billion to only $83.5 billion.  It has only [...]

We can all use some humor.  We here at Why Banks Fail, chose to put the amount of this “small” loan (relatively) in perspective..
Please check out our poll in our forums on how YOU would spend $37.8 billion in party plans (AIG took a vacation in Florida)?

Rent out the Dominican Republic for a year (annual GDP [...]

We posted an article a few days ago, AIG already spent $61 billion of the $85 billion, and correctly predicted that they would need more money soon.
Who knows what types of crazy parties they could be planning with the next installment.
The new allowance is $37.8 billion. That is QUITE the party.
The story is posted [...]

And what have they gotten so far?
In a move that hopefully does not indicate the results of a government handing money out for free (ahem), AIG has already spent most of their $85 billion.Â
In an article on the NY Times website, A.I.G. Uses $61 Billion of Fed Loan, we can see that not only have [...]

Is the government running out of money? Currently the Fed holds US Treasury Securities of $476.6 billion. That is compared to $791 billion 13 months ago.
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In an effort to increase liquidity the federal government is already making money available to the banks, so then what’s the bailout bill all about. Below you will see how [...]

Diamond and Kashyap on the Recent Financial Upheavals, by Steven D. Levitt, is an article published on September 18, 2008 at 10:04am at the New York Times website.Â
Steven is as confused as everyone else is about what is going on in the current financial world.  He asked some colleagues to help explain things.
Some great basic [...]