First AIG, Now “Luxury” Condo Developer to Get Millions in Taxpayer Money?

This just in from Develop Don’t Destroy Brooklyn: On Sunday troubled insurance giant AIG revealed the counterparties who benefited from the $170 billion taxpayer bailout of the besieged company. $400 million of that bailout would go to a proposed basketball arena, which, if it’s ever built, is already slated to receive hundreds of millions of dollars in subsidies funded by New York City, New York State and federal taxpayers, and is reliant on New York state’s use of eminent domain to seize homes and businesses.

Britain’s Barclays Bank was the beneficiary of some $8.5 billion worth of the AIG bailout by US taxpayers. Barclays has a $400 million naming-rights deal for Forest City Enterprises developer Bruce Ratner’s proposed $1 billion Barclays Center basketball arena, the centerpiece of the company’s floundering Atlantic Yards development plan in Brooklyn, New York.

Thus the American taxpayer is, in essence, picking up the tab for a British bank’s $400 million vanity project.

“Why are TARP bailout funds flowing through AIG to a British bank to Cleveland-based Forest City Enterprises for a billion dollar arena in Brooklyn? Why are federal taxpayers being forced to pay for Barclays’ marketing scheme? There is no justification for it, especially as TARP funds are supposed to spur banks to start lending again, rather than prop up activities such as the Barclays-Ratner boondoggle,” said Develop Don’t Destroy Brooklyn spokesman Daniel Goldstein. “The federal bailout of AIG was not intended to assist Barclays in hyping its brand in Brooklyn, or to help them slap their logo, for 20 years, no less, on a basketball arena already heavily dependent on city, state and federal subsidies.”

In February there was a political and public uproar over Citigroup’s $400 million naming rights deal for the nearly completed home of the New York Mets—Citi Field—because the financial firm had received $45 billion worth of the TARP bailout.  At the time the New York Daily News reported that the House Financial Services Committee Chair, Congressman Barney Frank, said that:

…Naming rights deals will be off limits for firms taking taxpayer money in the next $350 billion installment of bailout money for banks and financial institutions.

“I’m confident you won’t see anything like that going forward,” in the next bailout round, Frank said.

 

Unlike Citi Field, the proposed Barclays Center arena in Brooklyn has not even broken ground.

Song of the Day 3/18/09

Every day, our top 666 songs of alltime countdown gets one step closer to #1. Wednesday’s song is #497:

King Crimson – Starless

Arguably the great British art-rock band’s finest twelve minutes or so, a suite that starts out wistful and eventually goes starless and bible black, John Wetton’s bass climbing deliberately and murderously as Robert Fripp holds down the suspense with his guitar. Classical music devotees will recognize a theme from Messiaen’s Quartet for the End of Time – figures that Fripp would be a fan, doesn’t it? From the Red lp, 1979; the link above is a torrent.