Don't worry! They'll make print more!
Posted on 09/16/2008 4:22:50 PM PDT by rabscuttle385
The Federal Reserve is considering an $85 billion rescue for embattled American International Group that could leave the government in control of the firm, according to people familiar with the matter, though the structure of a deal remains unclear.
(Excerpt) Read more at online.wsj.com ...
NO MORE BAILOUTS!!
Well to me Reagan Man, 85 billion for AIG and a 80% stake in the company COULD turn out to be a good deal for the taxpayer.
Their assets were 1 trillion, but who knows how much they are leveraged?
LOL! Keep it up (irony, sarcasm). Eventually, the Fed will have to lower the rate again, which will cause the dollar to equalize even more with third-world currencies. Pet social programs for psychology and social work will also have to be cut, eventually. People who are out of touch are also cutting future supports for their family pathologies. And I didn’t even mention the wars.
AIG might well be too big to fail, in a way that Lehman was not.
Maurice Greenberg, former CEO of AIG who held the position until 2005, when he stepped down and was replaced by Martin J. Sullivan.
He is the father of Jeffrey W. Greenberg, former chairman and CEO of Marsh & McLennan Companies (MMC) before he was ousted, and of Evan G. Greenberg, president and CEO of ACE Limited. Together, he and his sons controlled a major portion of the insurance industry.
Just reported on Kudlow - 85 billion loan with 80 percent stake - done deal
Don't worry! They'll make print more!
No doubt, in a few months, we’ll be hearing of gifts of 50 billion $ to some despots in Africa who will sent most of it to their Swiss accts, 50 billion $ to save the polar bear, 50 $ billion for climate change, or against it, 50 $billion for global warming, 50 billion for errant asteriods, BUT WAIT! THERE’S MORE
Send Dodd, Obama, McCain, et al. a few checks and see what happens.
The Federal Reserve is almost forced to bail out AIG. This company has their hand in almost everything. If they ever collapsed you would see interest rates rise up into double figures and that would dry up lending around the world. That would almost guarantee a pretty harsh recession.
‘The Fed’s action was disclosed after Treasury Secretary Henry M. Paulson and Ben S. Bernanke, president of the Federal Reserve, went to Capitol Hill on Tuesday evening to meet with House and Senate leaders. Mr. Paulson called the Senate majority leader, Harry Reid, Democrat of Nevada, about 5 p.m. and asked for a meeting in the Senate leader’s office, which began about 6:30 p.m.
The Federal Reserve and Goldman Sachs and JPMorgan Chase had been trying to arrange a $75 billion loan for A.I.G. to stave off the financial crisis caused by complex debt securities and credit default swaps. The Federal Reserve stepped in after it became clear Tuesday afternoon that the banking consortium would not be able to complete the deal. ‘
http://www.nytimes.com/2008/09/17/business/17insure.html?ref=business
The Commons, we are such chumps and suckers.
It’s a BigGubamint-Corporate kind of thing, becoming very popular again of late, and much like entitlement programs, likely to gradually suck the oxygen out of the pond.
It’s Third Waysian driven at its core, imo, as we witness a progressive reining in and fixing of those big nasty financial institutions and Congre$$ while the head looters (on both sides) feign concern and then skip town to run for re-election or to sell books.
2004
In the two years after the Big Dig issue, American International Group paid Kerry’s way on a trip to Vermont and donated at least $30,000 to a tax-exempt group Kerry used to set up his presidential campaign. Company executives also donated $18,000 to his Senate and presidential campaigns.
Some government watchdogs said Kerry’s story is a textbook case of Washington special interest politicking that he rails against on the presidential trail.
“AIG never requested any assistance from Senator Kerry concerning the insurance we provided the Big Dig.”
During the 1990s, Sens. Kerry and Edward Kennedy, D-Mass., helped win new federal funding for the project as its costs skyrocketed and threatened to burden the state’s government. In 1998, Kerry was credited with winning $100 million in new federal funding.
But in 1999, Transportation Department auditors discovered that Big Dig managers had overpaid $129.8 million to AIG for worker compensation and liability insurance that wasn’t needed, then allowed the insurer to keep the money in a trust and invest it in the market. The government alleged AIG kept about half of the profits it made from the investments, providing the other half to the project.
Outraged by the revelations, McCain submitted legislation that would have stripped $150 million from the Big Dig and banned the practice of allowing an insurer to invest and profit from excessive premiums paid with government money.
You can not buy what is not for sale. And what, or whom, are politicians selling?
Us.
And how did that come about? Because we delivered, or our parents and grandparents did, into their hands. They own us, and our children and their children.
On the plus side, we got large screen TVs from China, and cheap, poorly built junk box houses that will fall apart in fifteen years and all the non taxpaying illegals that it took to make them.
According to the New York Post, Spitzer received $18,500 in campaign contributions from 16 attorneys from Paul, Weiss, Rifkind, Wharton & Garrison, where Spitzer once worked as an associate - and which currently represents AIG.
Although Greenberg resigned as CEO and chairman of the AIG board, Greenberg still manages Starr International (SICO) and C.V. Starr. SICO and C.V. Starr (which was already under fire for millions in diverted commissions and questionable executive pay) are AIG private holding companies that control billions in AIG stock. More importantly, the Starr companies constitute the conglomerate’s original roots as an intelligence-related proprietary founded by OSS agent Cornelius Vander Starr.
In other words, Greenberg remains in charge of the (real) “baby.”
Dow Jones Newswire is reporting it as a done deal. $85 Billion. Anyone find it odd that Sunday night when AIG was frantically seeking a buyer, the price tag was said to be $40 billion? More than doubled in less than 48 hours.
AIG is 4 to 1 nearly in Dem contributions for the ‘08 cycle:
Money to Congress: 2008 Cycle
Dems: Dems: $361,517 $361,517
Repubs: Repubs: $95,250 $95,250
Others: Independents: $0 $0
Incumbents: Total to Members: $440,717 $440,717
Non-Incumbents: Total to All Candidates: $16,050 $16,050
Btw, one of the reasons the stocks didn’t take a drop today was that the Fed passed around $70 Bil this morning in loans.
And the fairies from the Plunge Protection Team.
This is not a "bail out" in the sense that AIG is in dire need.
I am not a member and could not read the entire article.
Other reports say that Goldman Sachs, JPMorgan Chase, and the Fed could put together a $70 billion to $75 billion line of credit, funded by a group of individual lenders.
AIG will work to repay the loan quickly so the Gov't does not exercise the warrants, thereby returning the company back into private hands.
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