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Here is some inside information. Most American Ex-pats who work in London & recieve annual bonus payments usually have the checks paid directly into tax-free bank acounts in the Caymen Islands or similar. So for the US Congress to say they are going to slap a 90% clawback tax is nonsense. Are they now going to go back over all the years that these people have been cheating the IRS? No - why not? Because the Madoff affair has shown that most rich establishment people dont pay their fair share of taxes. Ditto the hearings in Washington for Obamas appointments - they dont pay all their taxes either. Unless there is a 2nd American Revolution this is NOT going to change - no matter what Obama says
AIG's Credit Default Swap fiasco was based in its London office. The still to come tsunami of CDS debt will dwarf the $170 billion of tax-payer money so far thrown at the company to keep it afloat. It is only a question of weeks before the enitre system crashes - never mind the nonsence from Benanke that it will all be over by the end of 2009. The US government CAN abrogate bonus contracts thru the courts just like the judges who deal with foreclosures of homes & autoworkers whose work contracts have been altered. For Obama to say nothing can be done is a lie - this is the last greedy grab by the establishment's pals. Only when we see bankers & their Congressional water-carriers twisting in the breeze will their be any halt to the economic decline.
AIG is a huge multinational company. AIG financial products is based in the European Union. This division was responsible for writing the CDS protection. This European division is responsible for destroying the whole company. It is this division where US taxpayers money is going. Taxpayer money is going to this division and distributed to European banks.
IN THE WORLD PAPERS
IN THE FRENCH PAPERS