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Govt reportedly considering conservatorship of AIG

Discussion in 'BBS Hangout: Debate & Discussion' started by robbie380, Sep 16, 2008.

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  1. robbie380

    robbie380 ლ(▀̿Ĺ̯▀̿ ̿ლ)
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    No link but it was a headline and being reported on CNBC. Obviously, AIG's stock is getting hammered on this news down about 40% from where it closed.
     
    #1 robbie380, Sep 16, 2008
  2. robbie380

    robbie380 ლ(▀̿Ĺ̯▀̿ ̿ლ)
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    Great now the WSJ is reporting that the Fed is considering some sort of aid to AIG. This was rumored to be on the table but this most recent report makes it more official. Who the hell knows what is going on now?
     
    #2 robbie380, Sep 16, 2008
  3. SamFisher

    SamFisher Member

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    Lol, well I still have 125 leftover craptastic shares. Hopefully they will be conserved.

    Bloomberg has a story which i am too lazy to paste which says the same thing.
     
    #3 SamFisher, Sep 16, 2008
  4. SamFisher

    SamFisher Member

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    Robbie I think the DJ headline is late
     
    #4 SamFisher, Sep 16, 2008
  5. SamFisher

    SamFisher Member

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    one of the other things that happened to today was all other big insurers rallying in the face of possible elimination of the biggest competitor.

    That seems a bit misplaced to me. First off prop & cat insurers are facing 10-20 bb of hurricane losses due to Ike alone and second, the degree of interconnection among various insurers, reinsurers, and retrocessionaires on AIG's policies may leave a lot of risk that investors don't know about.
     
    #5 SamFisher, Sep 16, 2008
  6. JeopardE

    JeopardE Member

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    Well, Federal American Insurance Group here we come.
     
    #6 JeopardE, Sep 16, 2008
  7. insane man

    insane man Member

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    well supposedly...

    UPDATE: CNBC is reporting that there are doubts at Treasury about the legal authority of placing AIG into a conservatorship, as we reported in our original story.

    dealbreaker
     
    #7 insane man, Sep 16, 2008
  8. HayesStreet

    HayesStreet Member

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    I think AIG was disproportionately at risk to the subprime crisis. I took a flyer this morning and bought some shares. :)
     
    #8 HayesStreet, Sep 16, 2008
  9. Air Langhi

    Air Langhi Contributing Member

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    The problem is no longer just subprime.
     
    #9 Air Langhi, Sep 16, 2008
  10. JeopardE

    JeopardE Member

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    #10 JeopardE, Sep 16, 2008
  11. robbie380

    robbie380 ლ(▀̿Ĺ̯▀̿ ̿ლ)
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    now they are saying the fed is likely to give them the bridge loan.....................aaaaaaaaaaaaaaaahhhhhhh i can't take this **** lol. $85b-$95b bridge loan. massive shareholder dillution since govt gets warrants for most of the stuff at aig.
     
    #11 robbie380, Sep 16, 2008
  12. lpbman

    lpbman Member

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    90 billion?!

    Holy Frick that is a lot of money. That's like a $45,000.00 check to 2 million people.... that don't have any power, for example.
     
    #12 lpbman, Sep 16, 2008
  13. Air Langhi

    Air Langhi Contributing Member

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    What is that like a month in IRAQ?
     
    #13 Air Langhi, Sep 16, 2008
  14. JeopardE

    JeopardE Member

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    Considering the number of people that could be jobless and homeless in the wake of AIG's fallout, I'm not sure that's a better alternative. I'm all for moral hazard, but this one truly scares me.
     
    #14 JeopardE, Sep 16, 2008
  15. Major

    Major Member

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    Yeah - moral hazard doesn't make sense here. The owners of AIG are already basically wiped out - they suffered the consequences. What we're talking about here is a bunch of people that may not have done anything particularly morally hazardous getting screwed if AIG goes.

    They have to stop this or it will just snowball. I don't know about this particular bailout, but the BSC bailout is actually projected to net a profit for the government. I have no problem with that type of bailout structure at the end of the day - let the shareholders lose, but protect all the people that would be affected by the ripples.
     
    #15 Major, Sep 16, 2008
  16. lpbman

    lpbman Member

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    I was trying to scale the number 90 billion in terms that are easier to grasp.... not necessarily saying that money is better spent elsewhere.

    I go back to my thesis statement. Holy Frick that's a lot of money!
     
    #16 lpbman, Sep 16, 2008
  17. insane man

    insane man Member

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    #17 insane man, Sep 16, 2008
  18. SamFisher

    SamFisher Member

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    Wow.

    I used to do a lot of work for AIG and even share a buildng with them, and all i can say is just holy f-king wow.

    I think they had them draw up papers over the wknd but that looks obviated now
     
    #18 SamFisher, Sep 16, 2008
  19. B-Bob

    B-Bob "94-year-old self-described dreamer"
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    #19 B-Bob, Sep 16, 2008
  20. robbie380

    robbie380 ლ(▀̿Ĺ̯▀̿ ̿ლ)
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    oh baby i went from potentially losing a lot of money to making a lot. wooooooooooo! i got stuck long a bunch of preferreds and i was screwed when i saw the story that aig drew up bankruptcy papers and then miraculously saved by the patron saint of news david faber when he announced the govt deal was official. i can't take this anymore lol....i had my worst day ever monday and my best day ever today. hopefully by tomorrow i will be out of the hole from monday as long as nothing else randomly blows up.
     
    #20 robbie380, Sep 16, 2008
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