Financial Industry Rushes to Screw Us More Before Obama Gets In


AIG is renegotiating more favorable terms with the U.S. government, reports Bloomberg News, which says the insurer would get “lower interest rates and $40 billion of new capital” under the revised deal. “The government already on the hook for an open-ended liability,” marvels Naked Capitalism, “Yet the Fed is treating AIG as a party that has rights and is negotiating with them, as opposed to dictating terms.”

Also per Bloomberg, despite assurances made when it all blew up in September, the Fed refuses to disclose the disposition of “$2 trillion of emergency loans” made to banks as part of the bailout.

And USA Today reports that credit card companies are jacking up interest rates and fees so they can maintain profits on your debt even after they’ve securitized and sold it to third parties. Representative Carolyn Maloney calls billowing credit card debt “the next crisis.”

Obama’s been warm toward the bailout and will inherit a change-averse Fed. Paul Krugman is hoping the President-elect finds a little FDR in his soul.