AIG burned through 85bl and gets 37.5bl more?

[kingcopper]

If this in fact is true, that is a sobering counterparty loss in less than a month! If the losses were accrued against the likes of Chase, Citi, Wells Fargo, and the like, we've got a serious problem forming. One govt. entity will always be bailing out a corresponding govt. entity! The USA will not be able to keep the dominos from falling if this keeps up.:mad:

This will end in all counterparty banks being nationalized.:mad:

[we_are_toast]

Re: AIG burned through 85bl and gets 37.5bl more?

If this in fact is true, that is a sobering counterparty loss in less than a month! If the losses were accrued against the likes of Chase, Citi, Wells Fargo, and the like, we've got a serious problem forming. One govt. entity will always be bailing out a corresponding govt. entity! The USA will not be able to keep the dominos from falling if this keeps up.:mad:

This will end in all counterparty banks being nationalized.:mad:

Nationalization?! Don't be ridiculous. Our government would never nationalize the banks. ;)

Justin Fox catches something in Paulson’s press conference today:

Did anybody else notice that when Hank Paulson was describing in his press conference today what the Emergency Economic Stabilization Act enables Treasury to do, the first thing he listed was “to inject capital into financial institutions”?
That wasn’t how Treasury initially advertised its Troubled Asset Relief Program. It was sold as a way to get the market for mortgage securities moving (or, to use the jargon, liquid). Lots of academic economists objected that liquidity wasn’t the problem, it was insolvency. What Treasury needed to do was recapitalize financial institutions and take equity stakes in return.
…
None of the people asking questions at the press conference really seemed to pick up on this, of course (&%%$# Washington journalists!). Along with Paulson’s affirmation that the FDIC was going to use its “systemic risk” powers to protect depositors and unsecured creditors “as appropriate,” I take it as one more sign that we’re headed toward a Swedish solution of our banking crisis—recapitalization and temporary nationalization of much of the banking system.

[Supercilious]

Re: AIG burned through 85bl and gets 37.5bl more?

I have a question about the AIG rescue....

Q: If in the first round of bailout the taxpayer got 80% of shares for $85 bil, what exactly does the taxpayer gets for another $37.5 bil?
A: For another $37.5 bil the taxpayer gets ....shafted ...


Gee... I guess the AIG executives need to go now toanother retreat just to release the stress. I guess poor Martin Sullivan is exhausted... he really needs a spa and a pedicure:

[dcarrigg]

Re: AIG burned through 85bl and gets 37.5bl more?

I have a question about the AIG rescue....

Q: If in the first round of bailout the taxpayer got 80% of shares for $85 bil, what exactly does the taxpayer gets for another $37.5 bil?
A: For another $37.5 bil the taxpayer gets ....shafted ...


Gee... I guess the AIG executives need to go now toanother retreat just to release the stress. I guess poor Martin Sullivan is exhausted... he really needs a spa and a pedicure:

Let them eat cake?

[don]

Re: AIG burned through 85bl and gets 37.5bl more?

History will tell us if this proves to be a Social Moment To Remember.

The initial 85bl.

The arrogance in hearings.

The $$$$ self-indulgence.

The gym punchout.

Another 35bl handout.

Luckily class war is in our distant past :rolleyes:

[phirang]

Re: AIG burned through 85bl and gets 37.5bl more?

Let's see what happens with LEH CDS settlement tomorrow... I expect LIBOR to be down meaningfully after the wknd.

AIG had to be saved bcuz of CDS'... LEH, apparently, could afford to go down?

[Slimprofits]

Re: AIG burned through 85bl and gets 37.5bl more?

Nationalization?! Don't be ridiculous. Our government would never nationalize the banks. ;)

Wall Street Journal: U.S. Treasury Considers Buying Stakes in Banks

[phirang]

Re: AIG burned through 85bl and gets 37.5bl more?

Wall Street Journal: U.S. Treasury Considers Buying Stakes in Banks

BRICOPEC refused to get dumped with shit, and so now Paulson is compromising and offering equity,.

[D-Mack]

Re: AIG burned through 85bl and gets 37.5bl more?

Let's see what happens with LEH CDS settlement tomorrow... I expect LIBOR to be down meaningfully after the wknd.

AIG had to be saved bcuz of CDS'... LEH, apparently, could afford to go down?

Probably the Goldman CDS, which they are denying

NEW YORK (Reuters) - Goldman Sachs Group Inc (GS.N) rejected as "seriously misleading" a published report on Sunday that said the Wall Street bank had as much as $20 billion of exposure to the troubled insurance giant American International Group Inc (AIG.N).

The New York Times had said Goldman was AIG's largest trading partner, citing six people close to the insurer. It also said a collapse of AIG threatened to leave a hole of as much as $20 billion in Goldman, citing several of the people.

The report contrasted with a Sept 16 comment by David Viniar, Goldman's chief financial officer, on a conference call with analysts that Goldman's exposure to AIG was immaterial.

...

http://news.yahoo.com/s/nm/20080928/...nsachs_nytimes

[Slimprofits]

Re: AIG burned through 85bl and gets 37.5bl more?

The White House chimed in today.

White House spokeswoman Dana Perino said later on Thursday that Paulson is "actively considering" capital injections into troubled U.S. banks.

"Secretary Paulson is looking at all the different tools to figure out which ones should be used at what time and how robustly and how much money to put into each," she said.

Treasury's plan to inject capital would follow action by the British government on Wednesday in which it pledged billions of dollars to shore up banks' capital in exchange for preference shares.

The source familiar with Paulson's thinking said Treasury was working "extremely fast" to put together a capital injection plan.

[Tulpen]

Re: AIG burned through 85bl and gets 37.5bl more?

Let's see what happens with LEH CDS settlement tomorrow...

Some info on that:

http://bigpicture.typepad.com/commen...-cds-unwi.html

[GRG55]

Re: AIG burned through 85bl and gets 37.5bl more?

I have a question about the AIG rescue....

Q: If in the first round of bailout the taxpayer got 80% of shares for $85 bil, what exactly does the taxpayer gets for another $37.5 bil?
A: For another $37.5 bil the taxpayer gets ....shafted ...

For such a smart guy one is surprised you answered your own question incorrectly...:eek:

You yourself have pointed out that all this is a giant scheme to subvert the price discovery process, and rig the outcome. :cool:

Having spent $85 bil for 80%, it's obvious that Paulson wants us to think the business prospects and enterprise value of AIG have been elevated accordingly.

After all, if the next bailout tranche is done at a lower multiple than the one previous, what does that say about the success of the previous move, and how would that reflect on the reputation of a proud and respected [:rolleyes:] scion of Wall Street?

Just kidding in that first line btw...

[Tulpen]

Re: AIG burned through 85bl and gets 37.5bl more?

I have a question about the AIG rescue....

Q: If in the first round of bailout the taxpayer got 80% of shares for $85 bil, what exactly does the taxpayer gets for another $37.5 bil?
A: For another $37.5 bil the taxpayer gets ....shafted ...


Gee... I guess the AIG executives need to go now toanother retreat just to release the stress. I guess poor Martin Sullivan is exhausted... he really needs a spa and a pedicure:

Not enough style, I suppose they will feel frugal compared to the Barclay's folks:

http://www.dailymail.co.uk/news/arti...al-crisis.html

[Supercilious]

Re: AIG burned through 85bl and gets 37.5bl more?

That is an interesting piece of information if true. Why AIG went down and why it was rescued:
http://www.dailywealth.com/archive/2...008_oct_04.asp

[Tulpen]

Re: AIG burned through 85bl and gets 37.5bl more?

That is an interesting piece of information if true. Why AIG went down and why it was rescued:
http://www.dailywealth.com/archive/2...008_oct_04.asp

Interesting!