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 AIG Suffers $60 Billion Loss, Wants WorkOut on Feds $150B View next topic
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Aristotle
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Joined: 05 Dec 2007
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Location: On a sand dune, sipping a cold soda

AIG Suffers $60 Billion Loss, Wants WorkOut on Feds $150B
PostPosted: Mon Feb 23, 2009 7:34 pm Reply with quoteBack to top

CNBC is reporting that AIG has announced they expect to have another $60 Billion in losses, in some large part attributable to writing down commercial real estate investments.

CNBC was also reporting on 2/23 that AIG's management is asking the Federal government for another $150Billion in funding, but that they do not want the U.S. government's ownership to exceed its existing 79.9% ownership. However, on 2/24, WSJ ran a story about the deal terms AIG is seeking, and it appears that what they want is a complicated renegotiation of the Fed's $150Billion previous bail out. Essentially, AIG has been unable to sell assets, as contemplated in the previous plan. See: http://online.wsj.com/article/.....od=testMod

CNBC is reporting that an emergency AIG Board of Directors meeting will be held next Sunday.

CNBC posted the following story after the NYSE closed on 2/23:

http://www.cnbc.com/id/29353282

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Aristotle

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Last edited by Aristotle on Tue Feb 24, 2009 9:01 am; edited 4 times in total
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Aristotle
Nitroglycerin


Joined: 05 Dec 2007
Posts: 594
Location: On a sand dune, sipping a cold soda

Reuters Has Picked Up CNBC's Story
PostPosted: Mon Feb 23, 2009 8:27 pm Reply with quoteBack to top

See: http://finance.yahoo.com/news/.....42844.html

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Aristotle

As Yogi Berra said "It's like deja vu all over again."
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truehollywood
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Joined: 24 Jan 2008
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Location: CA

Re: AIG Suffers $60 Billion Loss, Wants WorkOut on Feds $150B
PostPosted: Mon Feb 23, 2009 8:34 pm Reply with quoteBack to top

This is so disturbing. I think we, as a country, just hit our meltdown into depression.
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joseph
Dud?


Joined: 23 Feb 2009
Posts: 7

AIG IMPENDING BANKRUPTCY
PostPosted: Mon Feb 23, 2009 9:50 pm Reply with quoteBack to top

LET THEM FAIL! THEY TOOK BILLIONS FROM US AND STILL THE COMPANY IS GETTING WORSE WITH ASSETS GOING BAD.
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Aristotle
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Joined: 05 Dec 2007
Posts: 594
Location: On a sand dune, sipping a cold soda

The Next Citibank Bailout
PostPosted: Mon Feb 23, 2009 10:11 pm Reply with quoteBack to top

CNBC analysts have been reporting, all day, that the Executive Branch has agreed to the terms of the further Citibank/Citigroup bail out which other media outlets have said Citigroup's executives are advocating.

The analysts comments, which I share, are that the Executive Branch is treating the public like idiots, i.e. that the public is too stupid to see that the economics of the deal as requested by the bank are grotesquely unfavorable to the public.

Has Obama drunk his own Kool Aide?

Shortly after the close of the NYSE today, CNBC has been running a tag line note on its screen that the next Citibank/Citigroup bailout will be announced tomorrow. We'll see.

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Aristotle

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truehollywood
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Re: AIG Suffers $60 Billion Loss, Wants WorkOut on Feds $150B
PostPosted: Mon Feb 23, 2009 10:19 pm Reply with quoteBack to top

This is a Saudi bailout, pure and simple. Wells is under pressure to acquire Citi. If they do this, they will never get out from under the govt.'s thumb.
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Aristotle
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Joined: 05 Dec 2007
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Location: On a sand dune, sipping a cold soda

Obama - Parsons/Citibank Connection
PostPosted: Tue Feb 24, 2009 8:16 am Reply with quoteBack to top

Monday 2/23 Politico was reporting that Richard Parsons, the "incoming Chairman" of Citigroup, was seen at the White House at 6:00PM. Politico also confirmed that Mr. Parsons was scheduled to meet with Valerie Jarrett, one of President Obama's chief advisors.

While Ms. Jarrett is an attorney, there is nothing in her published resumes that indicates that she has much experience in banking. As a result, we can all worry that Citigroup's representative will sell her a bill of goods that she will pitch to President Obama.

After I read the Politico story, I went on Wikipedia to learn Richard Parsons' background. See: http://en.wikipedia.org/wiki/Richard_Parsons

In Wikipedia, Mr. Parsons is listed as an Obama friend and campaign economic advisor. It seems to me that there is a profound conflict of interest in Mr. Parsons acting in that capacity, while at the same time being the "incoming Chairman of Citigroup", a significant debtor of the Federal government.

There is widespread criticism, by the financial press, of any Federal deal with Citigroup where Citigroup gets more Federal cash plus a conversion of the Fed's preferred shares into common shares of Citigroup at a price per share far above the market.

Does the Obama administration have the common sense to know that they will be ripped to shreds in the press when the Obama-Parsons connection becomes widely know AFTER a sweet deal is made for Citigroup?

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Aristotle

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I_Like_2Mortgage
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Joined: 25 Feb 2009
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Re: AIG Suffers $60 Billion Loss, Wants WorkOut on Feds $150B
PostPosted: Fri Feb 27, 2009 9:42 pm Reply with quoteBack to top

If AIG goes bye bye then what happens to an auto insurance policy.

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Last edited by I_Like_2Mortgage on Tue Mar 03, 2009 6:02 pm; edited 1 time in total
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Aristotle
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What About Insurance Policies Written by AIG?
PostPosted: Mon Mar 02, 2009 7:51 pm Reply with quoteBack to top

Remember that insurance companies are regulated by states, not the Feds. As a result, it's very complicated to analyze what happens on a policy by policy basis.

However, the scary thing to remember is that back when AIG was first bailed out, some idiot in New York State (I can't remember if it was the Governor or the Insurance Commissioner) said that he would let the AIG parent company "borrow" the reserves out of the New York State regulated insurance company. Nice.

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Aristotle

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