Govt reportedly considering conservatorship of AIG

Say hello to the bbs's newest government employee. At your service.

 

What happens now?

Clearly the government can not run AIG, how can they go about devesting their interest as AIG gets solvent?

DD

 

The government won't do anything, they'll have the Allstate dude/new CEO oversee the sale of most of the non-core businesses like aircraft leasing and asset management that can be sold quickly for a nice profit, then it depends on how much they want to sell the rest of it. The terms of the loan are punitive so I wouldn't be surprised if they start getting rid of the core businesses after, starting with reinsurance and the asian subs.

Hank G wants to acquire parts of it back but considering that most of his wealth is tied up in AIG stock he's going to have a hard time with that.

 

They don't want to run AIG, this just give them time to sell off the parts and unwind the swap risks.

 

"we're gonna need to go ahead and move you downstairs into storage B. We have some new people coming in, and we need all the space we can get. So if you could just go ahead and pack up your stuff and move it down there, that would be terrific, OK?"

 

You can keep the stapler.

DD