Yes, AIG has given employees a memo warning them to watch for their own safety. But the apparent purpose of that memo is to make sure they don’t talk to the press.

Here are a few more details why we’re right to be panicked about stories that AIG’s reinsurance side is a house of cards, too.

The WaPo is out with a story about how the remaining people at AIGFP are being unfairly lumped in with the banksters who broke the world economy. But then, toward the end of the article, someone reissues the same kinds of threats we saw in the white paper demanding bonuses: give me my bonus or I’ll wreck the world economy.

I’m with Jane. Tim Geithner is shortly going to have to admit he knew a lot more about AIG bonuses a lot earlier than he has admitted. And frankly, I’m more interested in what he learned in September than what he has learned in the last month.

Gary Peters asks the question all Michiganders have been asking since September. Why are UAW’s line workers forced to renegotiate their contracts and GM’s engineers forced to forgo bonuses, but not the banksters who ruined the economy?

The Financial Services Committee beats up on AIG.

We don’t have the AIG retention contracts. But we do have Joseph Cassano’s termination contract, which was probably negotiated at the same time. Here’s what it tells us is probably in those retention contracts.

I’m guessing that the American taxpayers just paid 11 AIGFP former employees retention bonuses even though they have already left AIGFP because they left “for good reason.” Huh!?!?!?

AIG seems to be saying to Tim Geithner that, if the US doesn’t let AIG pay its AIGFP managers their bonuses, those managers might trigger events that would put the US government on the line for billions more in payments.

The NYT continues its really crappy reporting on the auto bridge. In this installment, David Sanger has a fit over the “nationalization” of the auto industry. Funny, he was okay with the nationalization of a bunch of finance companies.