AIG to face conservatorship?

[jwmorrice]

Wow. We are living in interesting times!

jwm

AIG shares drop on media report
1 hour, 1 minute ago

NEW YORK (Reuters) - Shares of American International Group (AIG.N) fell 48 percent in trading after the bell on Tuesday after Bloomberg reported that the U.S. government is considering conservatorship as an option for the insurer.

Bloomberg cited two people briefed on AIG talks.

 

[Gyaos]

I hope they remove that TV on that building located on Hong Kong Island. Can't stand seeing the AIG symbol strole on this giant money wasting gigantic TV set on a building, what a waste of money. Even more anoying is seeing it from The Conrad Hong Kong when I have a free night. That TV is worth more than their assets now. Stock down 60%. They need $75 BILLION in funding. They're not going to get it. The World Stock Market collapse will happen.

Bye bye AIG, you F'n crooks. With all these financial institutions collapsing, makes me, a business owner, feel good in touch times. They have 180,000 employees ready to head to the unemployment lines. Here it comes!!

Gyaos Baltar.

 

[Malibook]

AIG shrs plunge as crisis mounts, takeover mulled

NEW YORK (Reuters) - American International Group Inc (NYSE:AIG - News) shares sank 48 percent on a report that regulators might take control of the giant insurer, though a U.S. government source said federal agencies do not have legal authority to put AIG into a conservatorship.

AIG has hired the law firm Weil, Gotshal & Manges LLP, which is also handling Lehman's bankruptcy, the New York Times reported on its website on Tuesday.

http://biz.yahoo.com/rb/080916/aig.html

 

[Malibook]

AIG may get $85-90 bln bridge loan in govt-brokered deal: CNBC
(Reuters) - The Federal Reserve is negotiating a $85-90 billion secured bridge loan for American International Group Inc. (NYSE:AIG - News), according to a report on CNBC.

Shareholders would be severely diluted by the bailout that involves the bridge loan. The government would receive AIG warrants for most of its equity in the bailout being negotiated. CNBC said the deal would give AIG incentive to sell its assets quickly to help pay off the bridge loan.

Federal Reserve Chairman Ben Bernanke, U.S. Treasury Secretary Henry Paulson and others are involved in the talks, CNBC said, adding that the bailout plan being negotiated "isn't a conservatorship."

http://biz.yahoo.com/rb/080916/aig_loan.html

 

[kbluejayk]

AIG may get $85-90 bln bridge loan in govt-brokered deal: CNBC
(Reuters) - The Federal Reserve is negotiating a $85-90 billion secured bridge loan for American International Group Inc. (NYSE:AIG - News), according to a report on CNBC.

Shareholders would be severely diluted by the bailout that involves the bridge loan. The government would receive AIG warrants for most of its equity in the bailout being negotiated. CNBC said the deal would give AIG incentive to sell its assets quickly to help pay off the bridge loan.

Federal Reserve Chairman Ben Bernanke, U.S. Treasury Secretary Henry Paulson and others are involved in the talks, CNBC said, adding that the bailout plan being negotiated "isn't a conservatorship."

http://biz.yahoo.com/rb/080916/aig_loan.html

This has now been confirmed by CNN Tonight!!

 

[Mia.Colpa]

Stock down 60%. They need $75 BILLION in funding. They're not going to get it. The World Stock Market collapse will happen.

Well they got it as reported on CNN.

Bye bye AIG, you F'n crooks. With all these financial institutions collapsing, makes me, a business owner, feel good in touch times. They have 180,000 employees ready to head to the unemployment lines. Here it comes!!

So you feel good knowing 180,000 employees will be without a job and families suffering???? Man, you have a heart of stone.

 

[S.C. Joe]

Its just like how some people laugh-are happy-when they see another driver getting a ticket, instead of thinking its lucky its not them. Oh yeah, some drivers think they never do anything wrong

 

[Uzo]

...karma sucks...these big companies made mistakes, but 18,000 employees face hardship that is going to affect EVERY business....

If you own a dining place, less people with $$ less customers...you own a clothing store...less people with $$ less customers...you get the idea?

You can cuss them now, but dont complain when your own business drops....there is NO sector that isnt going to feel this...even Dell and Disney are bracing for the trickle effect of these large layoffs..

 

[emacs]

Fed takes over AIG - $85B loan
Federal officials will take 80% stake in the nation's largest insurer in an $85 billion rescue plan to prevent financial chaos worldwide.

http://money.cnn.com/2008/09/16/news/companies/AIG/index.htm?cnn=yes

 

[FOOTSNIFFER]

At the very least, no severance payments ought to be given to any departing executives of AIG. I'm tired of incompetent topdogs getting millions after they've run companies into the ground.

 

[kbluejayk]

The Feds had to make this move! The domino effect of an AIG bankruptcy on world economies would have created a stock market collapse of 1929 proportions! It is only 'bridge financing' to allow AIG time to raise private funds. What a mess!

 

[Gyaos]

Can't the Fed give me $1 billion of that $85 billion? AIG won't notice.

Gyaos Baltar.

 

[S.C. Joe]

and this is just the tip of the iceberg!!!! very dark days ahead!!!

Don't say that ...am hoping the end...of this bs...is near. Markets have hit bottom in the Fall before.

 

[Serpent]

Don't say that ...am hoping the end...of this bs...is near. Markets have hit bottom in the Fall before.

Even the optimists predict this will go on for another 1yr.

Dr. Doom (Nouriel Roubini) predicts an 18-24 month deep recession, the kind more like the Great Depression than the one in 2000-2001.

 

[Uzo]

Asian markets are responding very well right now...

When FRE/FNM was taking up by the gov't everyone was hailing it was a positive step and a sign of recovery and look what happend...refusal to help LEH but a line of credit given to AIG to prevent literally world collapse of 1+trillion dollars...this road is getting bumpy and darker and as much as we hope it does not come, the worst in my eyes is still waiting for its moment...

We still have to wait for the other sectors to feel the trickle effect of these financial sector issues...its harder for loans to be issued, higher lending rates are going to hurt other industries big and small...this is just the start indeed

 

[S.C. Joe]

Maybe but then with evey bottom few see it right then.

But I have to say, I thought back in March the worst might have been over.

 

[S.C. Joe]

Notice too that this has all happen since the "fat cats" are back from summer holiday. I don't think thats by accident. Now that all the traders are back, things are getting done. JPM had a nice gain today..over 10%. There was no Black Monday yesterday either.

But the share holders in the wrong companys are getting killed.

Oil prices have been dropping, thats a pos. The US dollar is getting stronger too.

I'm hanging on and hope a Black Monday-or any Black Day isn't coming.

 

[S.C. Joe]

Historically.. october not a kind month for the stock markets.. this october should be very interesting! can you say blood bath??

True but Sept some claim is the worst month looking back like 75 years. Both months bottoms have happen in.

 

[Uzo]

There was no Black Monday yesterday either.


I'm hanging on and hope a Black Monday-or any Black Day isn't coming.

still, Monday was one of the worst days on the market on a global scale since 2001 when the attacks happened...we can call yesterday whatever, but it was definitely a horrid day...there was like 97% of companies in the red yesterday (correct me if that is wrong)...

I remember few yrs back when all these idiots were getting the "American Dream" of owning a home with nothing down and bad credit and wondering how and when the lenders would suffer...little did I know it would be now, and with my money invested...

 

[S.C. Joe]

Black Monday 1987..down 22%...yesterday down 4%...thats the Dow Jones.


I'm lucky..my holdings are still off its lows...maybe real lucky. only by 10-15% but still, I'm happy. Down alot for 1 year but not dead.


I tell you...I almost jumped in and swap for AIG a few weeks back but didn't cause the stock I was thinking of selling went down as AIG went up.

Gets me how last Monday AIG jumped 3-4 $ to $24 then went down down down....FNM did the samething before it crashed, same with MER and LEH....its like the shorts, shorted them right at the perfect time