AIG Still Lobbies to Relax Oversight Rules (bailout recycled back to lobbying)

WSJ ^ | 10/16/08 | ELIZABETH WILLIAMSON

[TigerLikesRooster]

OCTOBER 16, 2008

AIG Still Lobbies to Relax Oversight Rules

After Receiving Federal Aid, Insurer Focuses on Laws Aimed at Keeping Tabs on Mortgage OriginatorsBy

ELIZABETH WILLIAMSON

WASHINGTON -- Even after receiving an emergency loan that gave the government an 80% ownership stake, American International Group Inc. is spending money to lobby states to soften new controls on the mortgage industry.

When the U.S. took control of failing mortgage titans Fannie Mae and Freddie Mac, it prohibited them from lobbying. But it hasn't banned the practice at AIG, a huge insurer that is still 20%-owned by public shareholders.

AIG is currently working to ease some provisions in a new federal law establishing strict oversight of mortgage originators, according to state regulators. The law requires that originators be ...

[TigerLikesRooster]

These guys are shameless. Maybe we should have let them go under.

[TigerLikesRooster]

Ping!

[Hattie]

These guys are shameless. Maybe we should have let them go under.

Surely you jest. These guys insure and provide our wonderful DC Congress with all their benefits. They will get whatever they want.

[ken21]

libby the ceo has promised to act “expeditiously” upon cuomo’s request to review executive salaries.

[BurbankKarl]

The government doesnt own AIG....they gave them a loan at 11% interest.

If the loan isnt repaid, then they can take ownership.

[eyedigress]

11 percent! Buh Bye AIG.

[BurbankKarl]

They will make it up in VOLUME!

[eyedigress]

What about Lehman?

[Orange1998]

http://banking.senate.gov/00_02hrg/022900/paulson.htm

Here is transcript of Paulson testimony Feb 29, 2000. He is trying to get the government out of Wallstreet and have self regulations. This all coming from a guy who know advocates bailing wallstreet out. Geez!!!! here is a part of his closing comments..... "Our firm is proud of our role in developing these markets through the years.

[BurbankKarl]

Lehman is bankrupt.

[eyedigress]

I know. I just pushed 60% back to bonds today. I figured it was my best chance.

[VOA]

AIG Still Lobbies to Relax Oversight Rules
(bailout recycled back to lobbying)

The news report on CNBC about banks AND Freddie/Fannie now
sitting on their cash, rather than helping distressed home owners
even do short sales on their houses (rather than foreclosures)...
one does wonder if Paulson, Bernanke, Dubya, Frank, Dodd and the
rest of the "saviours" were just out to push
"The Banker, Broker, and Lobbyist Enrichment Act".

[Orange1998]

Read this article. Very interesting how it play out.

http://seekingalpha.com/article/99619-lehman-s-cds-mess-who-s-on-the-hook?source=yahoo

[VOA]

Here is transcript of Paulson testimony Feb 29, 2000.

Kind of shameful that this embarassing tidbit is only now getting
publicity (I heard about it on CNBC).

IIRC, the request was denied by the SEC at that time, but was
granted after another appeal in 2004.
I'm no finance expert, but was shocked that the rule change was
to replace the "times 15" leverage limit...directly with a
"times FORTY" leverage limit.

No intermediate testing of whether this could bite back...
like upping it to maybe "times 20" leverage limit for a year and
then ratchet it up over a period of years.

But I guess when playing with "other people's money", it's like
driving a powerful stolen car. HIT THE GAS!!!
(Because we ain't gonna' pay for the blown engine!!!)

[Ken H]

transcript of Paulson testimony Feb 29, 2000 -

http://banking.senate.gov/00_02hrg/022900/paulson.htm

-tabbed for later reading-

[Wolfie]

Must be tough to get their pants on with balls that big.

[TomasUSMC]

AIG SAYS IT NEEDS MORE STINKING MONEY ....BREAKING NEWS.