Govt reportedly considering conservatorship of AIG

Yeah the Weil Gotshal story was just a fu-k up by the Times blog posting/wire posting.

I saw that story earlier today (or even yesterday on a legal blog, IIRC) and it was no secret, it's just that the asshat who runs the blog decided to run it again right when the other news came out.

 

I don't think I like having the US gov't taking a stake in all of these companies... What happens to the free market where well run companies get to survive while poorly run companies go out of business?

 

If AIG had gone under then it's likely that even a lot of well run companies (which includes most of AIG's units and it's 115,000 employees) wouldn't have survived.

 

What does this mean for Manchester United, since AIG signed a 4 year 56 million pound deal to be their jersey sponsor less than 2 years ago?

 

I am more than happy to see the Man U players wearing jerseys with "USA" on their chest.

 

As a Man U supporter, who lived there and still is in a group with season tickets....I would find that AWESOME !!!

Though I think the rest of my friends in the group ....not so much.

DD

 

WOW!!!!

done deal

Government announces $85 billion loan to save AIG

 

That is why I will only day trade skf and uyg when I am on the computer.

 

It will say FAIG on ronaldo's jersey lol.

No seriously I'm sure the club and Fed-AIG will come to some deal (guessing a walkaway effective after the season or sooner, I don't think Man U/Glazers wants to piss off the US Govt)

 

I'm not too worried, I'm sure we can get a more lucrative deal considering we've won 2 Premiership titles and the Champions League since AIG signed the deal.

 

Probably right, though the declining world economy may dampen it a bit.

 

So, we all now own 79.9% of AIG.

Amazingly ironic that capitalism run amok has now turned us all into socialists... and under a Republican administration no less.

 

I was thinking of this too.

The sad part is that 50 years from now, lobbyists posing as libertarians will claim regulation is burdensome and unnecessary and that they could do it the right way this time...

Assuming we'll make it in 50 years...

 

I just have this random idea: the US Government can set up a public listed company so that all the US Citizens can buy shares of the 80% of AIG (the Hong Kong Government did similar thing after they intervened the stock market during the economic storm in 1997).

Now the world's largest company is officially owned by US Citizens and they would have the right to elect the senior executives of the company. No more expensive executives payrolls, out of proportion fund admin fees, and unaffordable health care insurance. Another good thing is this giant private company would not have to be run by US bureaucrats.

 

As an AIG shareholder for most of the last year I can tell you that overcautious bureaucrats would have been a welcome change from Greenberg, Sullivan, etc.

 

too bad elliot spitzer had a weakness for call girls.

maybe they should bring him back and get him to clean up wall street again.

 

Well that's a great idea....but what's to stop hedge funds from snapping it up and starting the whole vicious cycle again?

 

Wouldn't it be nicier that you yourself would have a say in the major decisions of the company?

It is fine if the majority eventually preferred to let the government officials to run the company as long as the general public has a way to get rid of those whom did not perform.

 

I am not an expert in money market so I don't want to act like one. Feel free to correct me if I am wrong below.

There are ways to avoid/limit hedge funds' vicious attack I believe, e.g. increase their costs and make the stock movement of the company transparent.

When I said to let all the US Citizens to buy shares of the company that owns 80% AIG, I really meant ALL US citizens. During the IPO process, the government can reserve a very large portion of the shares for the general public. The more people holding shares of the company means higher cost to those hedge funds.

The top ten (or 100) transactions and shareholders of the company are disclosed openly to public everyday. So those suspicious activities could be identified early.

In Americans I trust.

 

We really dodged a big one, guys. Let's just say that an AIG failure would probably have guaranteed the Great Depression Act II.

http://www.clusterstock.com/2008/9/aig-bankruptcy-would-be-extinction-event