The insurance giant AIG has lately become the poster child for corporate risk-taking, mismanagement and greed. Its unimaginably large losses, rooted in insurance it extended to financial companies engaged in subprime mortgage-backed transactions, have destroyed both AIG’s corporate reputation and balance sheet.
Indeed, but for the fact that Treasury Secretary Henry Paulson – who during his days running Goldman Sachs had extensive ties to AIG – deemed the insurance firm “too large to fail,” the company would surely have gone under by now. Instead, Mr. Paulson gave AIG well over $40 billion of the slush-fund Congress intended to bailout the financial sector (part of a total $150 billion the U.S. has sunk in AIG to date). As a result, you and I and our fellow taxpayers have been saddled with ownership of nearly 80 percent of this once high-flying and now-floundering global insurance enterprise.
Another result of AIG’s nationalization is, if anything, even more worrisome.”
It turns out that AIG has a subsidiary specializing in “takaful” – insurance products that are purportedly “Shariah-compliant.” I say purportedly because – while they have been cynically deemed “pure” (halal) by Shariah advisers that AIG employed for the purpose of making such certifications – the Islamic code expressly prohibits business transactions that involve risk. Consequently, insurance products designed to hedge against risk are inherently “impure” or haram.
Whatever the status of AIG’s “takaful” products under Islamic law, the U.S. government now has a vested interest in their financial success. Uncle Sam has become Uncle Shariah.
In so doing, Henry Paulson has acted in a manner that not only appears to smack of a conflict of interest and egregious disregard for the public’s fiduciary interests. He also seems to have violated the Constitution.
The First Amendment of the Bill of Rights has long been interpreted as prohibiting the establishment of any national religion or conferring upon one religion a preference over others. By taking a massive stake in a company that explicitly promotes Islam’s Shariah law, the U.S. government is acting at odds with both of these revered principles. […]
Most Americans remain unaware of the menace posed by Shariah, let alone the extent to which it is being insinuated stealthily into our country. Happily, the latter is the subject of an excellent new book by the acclaimed scholar of Islam, Robert Spencer, entitled, “Stealth Jihad: How Radical Islam is Subverting America Without Guns or Bombs.”…
Thanks for the hat-tip, Frank.
Read it all.