AIG also has tremendous assets. The feds got 79.9% of those for preferred convertible at 12% interest. That is a loan that has to be repaid. It also gets to cramdown the debt. This is a dream deal.
It is kind of like buying 80% of MSFT by loaning them a fraction of the revenue and being able to force Vista on the previous share holders. And getting first dibs on the revenue.
I’m more worried about the rest of this: 1) allowing MSH, GS, and MER to survive intact (AKA a NYC jobs program for three buggy-whip companies) and 2) approve the MER BAC merger. The big BDs need to fail. Liquidate the assets and cramdown the debt.
Don’t get me goin’ about Vista!
What is your concern with the MER-BAC deal? I thought M&A was one long-standing solution for “buggy-whip co’s”? I can see potential kicking-the-can-down-the-road of problems in the whole sector, by making commercial/investment amalgams now the perceived solution, but please elaborate.