Liddy Pleads for Forgiveness as AIG Rescue Unravels
Source: Bloomberg

American International Group Inc. Chief Executive Officer Edward Liddy is under pressure to convince taxpayers they won’t lose billions of dollars in the U.S. rescue of the firm after his plan to sell assets stalled. Liddy, appointed to fix the insurer after it needed an $85 billion lifeline that grew to $150 billion, is asking the government for help again, two people familiar with the matter said this week. His strategy to sell most of New York-based AIG’s businesses may be scrapped after not getting enough bids, and a restructured bailout may include giving units to the U.S. in exchange for forgiveness of some loans, the people said.

It started with this rant by Rick Santelli from CNBC:

This rant at the Chicago exchange was covered all over the mainstream media and the internet blogs. Much ado about nothing – just watch CNBC pat themselves on the back and realize it’s another case of pop eating itself. The message doesn’t mean anything to CNBC (maybe not even Santelli) but the style of delivery is important. Anyway, Santelli mentioned something about a tea party. Other people took that line and ran with it. One of those people is blogger Michelle Malkin:

I’ve got tons of photos and e-mails pouring in from Tea Party people across the country. I joked to a Christian Science Monitor reporter covering the events that fiscal responsibility is the new counterculture. More coverage/photos/livestreaming at TCOT Report.

There is, as the old ’60s song goes, something happening here. And what it is, is very clear: A grass-roots revolt against the culture of entitlement. The spendzillas in Washington do not speak for us.

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