Posted on 10/09/2008 4:16:40 AM PDT by Amityschild
Thanks for that great post!
Gee -- ya think?
If they're staying afloat with my money, they can stay in the same kind of hotel I do. Holiday Inn Express is just fine.
You're referring to the people who bought and sold all the worthless paper they're stuck with and need to be bailed out from under?
Let them eat cinnabon.
No, not those idiots, the sales people who sell insurance products to Companies and Nations.
I have a lot of meetings in high-end places like this, I wonder if it would be okay for me to just start sending the bills to the Fed.
“These idiots better start getting used to their meetings at the Days Inns and Super 8s.”
These are the big money ‘independent’ rainmakers. They can leave at any time and there will be endless suitors willing to take them anyhwere they want to go. These are annual awards conferences that these producers work over a year to qaulify for. Take that away and you may as well kiss the govt loan goodbye. These subsidiaries are profitable independent companies w nothing to do with the mess created by the idiots at AIG corporate. We need them to conduct business to the best of their ability and it is challenging enough for them to retain key talent in this environment without pulling the plog on their profit centers. It does look terrible but I don’t know what they can do. If they cancel everything across the board you will see a brain drain overnight and this thing will snowball so fast the govt will never see a dime of their bail out. We may not anyway but I’d like to give it our best shot.
“These people make a lot of money selling AIG services. If they want to drop that income merely because AIG cancels their all-expense vacation then so be it.”
Actually these guys already sell the other companies products. They sell alot of products from alot of companies. They are independent agents. The can flip a switch and emphasize GE, Lincoln, Prudential, I could name twenty off the top of my head. Every one of these companies would gladly send these folks to their identical conference they each hold on a regular basis and AIG has to fight to retain them. This environment only makes it more dificult to keep them and you suggest we just kick em out the door. This thing will snowball so fast our heads will spin.
Insurance companies are regulated independently from the Holding Company (AIG, Inc) The OTS, Office of Thrift Supervision regulates AIG, Inc. The Insurance companies are regulated by the individual states in which they do business. This additional level of oversight, together with a more slovens focused set of accounting standards ensures the financial strength of the insurance companies.
Even after all that regulation, if a company were to fail, the states maintain Guaranty Funds which are funded by the industry to make sure that Policyholder claims are met.
So the short answer to your question is yes, your policies are fully in force and backed by a company with sufficient capital to pay any claims that you might have.
Can some one explain?
Fox just said this junket has now been cancelled.
Someone must have told them to cancel or else.
Absolutely. And if American General loses these top non-employee producers to other companies, AG's revenue will drop like a stone. Then no one will want to buy them, and AIG won't be able to come up with enough money to repay the loan. That's the reality. Those criticizing them have no idea how insurance sales work or that by insisting they stop these conventions (which have already been paid for out of funds that have nothing to do with the bailout) risk that the taxpayers will have to absorb the 85 billion loan.
LOL! Liddy sure has AIG on his face now, doesn't he?
They had problems back then paying contractors (the contractors would work until payment was seriously past due — then pull out for months until they got paid) It was the worst management of a construction site I've ever seen. Heads would roll once a month - a new AIG bunch would come in and about time they got up to speed on what was going on — time for more heads to roll.
Meanwhile, Alex Baker buys a 2 million dollar yacht, that I bet he has yet to step foot on, parks it at the marina, before the marina is completed.
One of his underlings told me he buys stuff like this sight unseen, everyday, like you and me would buy a coke.
A least once a week two hard body girls in bikinis show up to wash and clean the yacht.
I suppose it wouldn't do any good to explain that this is not the same people who sold CDS. Your 401k is down so you are prepping the guillotine. What happens next is entirely predictable, a bunch of people who never had a 401k see you standing next to an unused guillotine.
Insurance companies need to hedge against losses but the hedge funds used leverage to speculate and lost, so now deleveraging means there's no more capital or credit available for hedging.
Who ever bailed out AIG should be calling the shots. That’s why I’m wondering why all that the Bush administration can do is say that AIG’s actions are “dispicable”.
I would comment on your comment but to be quite frank, I have no idea what you wrote and what it is to infer....
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