Good Question: Why is the US taxpayer subsidizing Chinese participation in PPIP ? China puts up $2 billion, Treasury matches that with $2 billion, and pretends that 2 + 2 = 24 and the Chinese get $24 billion in distressed assets that are guaranteed by the FDIC. I simply do not understand this one. (Source, click to read more. )
By the way, didn’t AIG pay out at 100 cents per $ to both domestic and foreign banks?
The beneficiaries of the government’s bailout of American International Group Inc. include at least two dozen U.S. and foreign financial institutions that have been paid roughly $50 billion since the Federal Reserve first extended aid to the insurance giant.