AIG in "Conservatorship"

[Mega]

Seem to be hearing this word a lot the last week, funny i NEVER heard it before.....................I wonder what Next Weeks new FED Word will be?

"Fuckup-a-ship"..........?
Mike

[The Outback Oracle]

Re: AIG in "Conservatorship"

http://www.cnbc.com/id/26743248

CABM!!!!!!

[Mega]

Re: AIG in "Conservatorship"

"Fidel" must be laughing his ass off.
USA More COMMIE than Cuba!
Mike

[The Outback Oracle]

Re: AIG in "Conservatorship"

How much are they going to take over? This won't be the last insurer...then we have GM, Ford and all the others I have not even heard of nor even imagined!
I just keep trying to figure what it means for the rest of us outside the US? I'm not coming up with much other than the world financial system, based on the dollar, is f....d!

[rj1]

Re: AIG in "Conservatorship"

HI just keep trying to figure what it means for the rest of us outside the US? I'm not coming up with much other than the world financial system, based on the dollar, is f....d!

I don't know why, but the dollar is going up against all currencies it's crossed with. It makes sense that this would be dollar-negative, and yet since it was announced, the dollar is up against EUR, JPY, AUD, NZD, and GBP. (That's the only ones I'm looking at.)

[The Outback Oracle]

Re: AIG in "Conservatorship"

http://www.federalreserve.gov/

It's official

[GRG55]

Re: AIG in "Conservatorship"

http://www.federalreserve.gov/

It's official

Interesting wording...

Federal Reserve Board, with full support of the Treasury Department, authorizes the Federal Reserve Bank of New York to lend up to $85 billion to the American International Group (AIG)

Two things come to mind:

• On Sunday morning the number was $40 B; Monday afternoon the number was $75 B. Good thing the Fed acted when it did, or the price tag might have been twice as much...:rolleyes:

• So does "full support of the Treasury Department" include it supplying the $85 Billion (with the taxpayer's "support" in turn)?

[grapejelly]

Re: AIG in "Conservatorship"

Yes, it's a done deal...the US gubmint gets an 80% equity stake.

What authority does the government have to do this? What a puzzlement.

[Lucy]

Re: AIG in "Conservatorship"

Authority is one thing... certainly it'll be authorised/legally ratified retrospectively though I cannot comment on conflict with the US Constitution (i'm an Aussie).

I think one perspective is that we're seeing a new sovereign wealth fund (the US's) taking up the slack where others now fear to tread.

[GRG55]

Re: AIG in "Conservatorship"

Yes, it's a done deal...the US gubmint gets an 80% equity stake.

What authority does the government have to do this? What a puzzlement.

It appears the Fed will get some sort of senior preference shares in exchange for the $85 B "loan". What does that imply about their expectation of ever having the loan paid back?

[jk]

Re: AIG in "Conservatorship"

It appears the Fed will get some sort of senior preference shares in exchange for the $85 B "loan". What does that imply about their expectation of ever having the loan paid back?

i read that aig generates about $30billion per year in profit, so it might turn out to be a good deal. depends on what happens with their cds exposures, i suppose.

[*T*]

Re: AIG in "Conservatorship"

I propose a mega-humour index. The funnier Mega gets, the worse we know things are.

[Mega]

Re: AIG in "Conservatorship"

I couldn't make it up!
Mike

[c1ue]

Re: AIG in "Conservatorship"

I don't know why, but the dollar is going up against all currencies it's crossed with. It makes sense that this would be dollar-negative, and yet since it was announced, the dollar is up against EUR, JPY, AUD, NZD, and GBP. (That's the only ones I'm looking at.)

This has been talking about significantly: the deleveraging process as demands for cash grow cause investments abroad to be sold and dollars bought.

This applies also to commodity investments.

We're getting pretty far down that road though.

[Mega]

Re: AIG in "Conservatorship"

I propose a mega-humour index. The funnier Mega gets, the worse we know things are.

"T"
Am after a nice female, any going by you?
Mike