Why Are We Spending $50 Billion to Bail Out Euro Banks?

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Yeah yeah. Fucking bonuses.

But the real news to come out of the latest AIG dustup is that American taxpayers have been ponying up billions through "AIG" to make foreign banks whole, 100 cents on the Euro.

AIG finally revealed its list of counter-parties (.pdf) -- and it seems that roughly $50 billion has paid out to Europe's (+Montreal's) biggest financial institutions.

Sure. This is a global economic crisis. But from the earliest days of TARP there was debate about whether Treasury should be buying up the world's bad-bet assets.

As I recall, the idea of U.S. taxpayers bailing out UBS seemed was a non-starter, politically, at the time.

Now we discover that AIG bailout has done just that. By design? It's a question Hank Paulson and Tim Geithner should be made to answer.

Check out the numbers below* and ask yourself: Why haven't the Europe's central bankers been asked to put some skin in this AIG game?

[UPDATE: The HuffingtonPost is reporting that the Fed has been injecting hundreds of billions to foreign central banks, suggesting that Europe's bankers may be in no position to share in bailout burdens.]

Deutsche Bank $11.8 billion

Landesbank Baden-Wuerttemberg $100 million

Calyon $2.3 billion

Rabobank $800 million

Societe Generale $11.9 billion

The Royal Bank of Scotland $700 million

Deutsche Zentral-Genossenschaftsbank $1.7 billion

Dresdner Bank AG $2.6 billion

UBS $5 billion

Bank of Montreal $1.1 billion

KFW Bankengruppe $500 million

Banco Santander $300 million

Danske $200 million

BNP Paribas $4.9 billion

HSBC $3.5 billion

Dresdner Kleinwort $2.6 billion

ING $1.5 billion

Credit Suisse 400 million.

* Numbers added quickly in my head from AIG's several breakdowns; don't quote without checking the math yourself.