So what does the bit about “cancelling the loan” mean? Does it mean AIG gets to keep the $60 billion (didn’t they burn thru it all already anyway) without having to repay the loan?
reasoning behind the gov not enabling AIG to fail is the loss of thousands of jobs and the security of an entire economy. However, I believe that gov impeding in the matter will provide short term security as the issue will continue to increase in severity as long as we reward undisciplined behavior. Simple reasoning has it that action should be followed by consequence; if consequence is superficially tampered with, consequence will simply delay it’s course and future problems will emerge.
Therefore, irrelevant of the problems that it will create, allow AIG to reap it’s consequence so that there can be a lesson to learn from by other striving entities…
Question: Yes the insurance side is making money…….so why havent they sold these units. Why doesn’t another Insurance company buy these “prized units”? The originial loan was to keep them above water WHILE THEY SELL THIS THING………BOTH SIDES.
Why hasn’t Lexington been sold? WHY???
I GUESS WE SHOULD LOOK THE OTHER WAY NEXT WEEK WHEN THEY ANNOUNCE A $60 BILLION LOSS. IT’S OK OUR INSURANCE SIDE IS MAKEING MONEY.
Hey all:
Donna & Jeff are right.
The gelt is there.
The Fed are not idiots.
They put up the green, because they KNEW they were getting an incredible bargain: assets about $1 Trillion…-and they could buy the thing for $85 Bil..I mean..hel-l-lo-o ?
ok so where do we go from here ?
Fine: break it up, but back to the “G” word..GELT !
They want to do a conversion so the preferred stocks are paid, but what about the “commoners”
Are they gonna get f’d..-or are Obama-Geithner coming to the rescue ?
If they don’t the lawsuits will fly !
I agree. AIG should be liquidated, and the insurance industry absorb AIG going aways. This will help other insurance companies as policy holders look for new companies.
AIG who?
So help me here, Tomahawk, I just saw that part of the latest deal is that AIG gets $60b more, and the gov’t converts their preferred to common … who knows at what price. So doesn’t that put the gov’t’s ‘new’ position without priority and therefore similarly f’d with every other commoner? That’s how I read these tea leaves. Agree?
Yesterday it was hard to believe it could get any stinkier for me.
I don’t know Tomahawk, something doesn’t sound right with your reasoning. So what’s really going on is that the gov paid $85B so they would end up with $1 trillion in assets? Wow I guess we as taxpayers shouldn’t be worried then, since we’ll all be splitting $1 trillion worth of assets in a few years. Somehow I don’t think this is going to benefit the government…or the rest of us…or AIG for that matter since they are on the road straight to hell anyway.
I say after all that has happened, let them go and cut your losses. It’s AIG’s fault that they got themselves in this mess anyways. I don’t want to keep paying for them.
AIG died the day the music stopped in September, 2008.
Tim and Barrack’s idea to break up AIG into 4-5 parts is the first smart idea the turkeys in Wash. have come up with since they Nationalized AIG. (I guess breaking up is hard to do).
AIG is insolvent and beyond the brink.
At some point the sacrificial death will have a major impact on the insurance industry, but delaying the funeral will not help.
since AIG had so many “successful” and profitable entities why can’t they get extensions and write downs on all the garbage and go on making money with all the successful and profitable entities and payoff all the bad stuff over a period of years (prob alot of years)…….the way it looks is that we (USA Citizens) will be doing it over many years anyway with nohing but our “extra” cash.
Stop bailing out these guys, all of them. I dont see anyone bailing me out! If I can’t pay my bills, I go under. If they can’t pay their bills, the feds pay them! I took a cut in my pay so I would not have to lay off my secretary. Just STOP! I am sick and tired of my tax dollars going for this crap!
Not Private Client Group. they are not for sale and are part of the commercial insurance division. They mean the direct auto, century 21, aigm etc. etc. which is in discussions with Zurich right now. I wish they would stop writing articles until they know how to get it right!
You need to understand that it is in the government’s interest to help AIG restructure itself versus it failing. AIG is interlinked into so many companies, 401K’s, pension plans, governments, teachers unions, insurances etc globally that AIG failing would undermine the global economy- and create a downward spiral that would create further global financial market crisis. the split up of aig is a good thing for it’s over 100K employees and for the record, if I understood everything correctly- no more money given to them- they renegotiated the deal and created spin-offs. you should have listened to their 10K call this morning so that you would understand ands top the whining.
You don’t know what you’re talking about. Do you think that AIG is the only globally involved company? There are many other disciplined companies that can build on the ashes of AIG, which is the essence of a capitalist structure.
Do your homeworkd before you pounce on people who’s tax dollars are wasted.
I suggest you read the joint release from U.S. Treasury and Federal Reserve Board which Announces Participation in AIG Restructuring Plan – you are a day late on understanding the events of today- so do your homemwork
This AIG Bailout is getting beyond ridiculous.For years we have operated as a country on the premise of the free market system. We now have the Federal Government spending BILLIONS of dollars on a company thaat does and will continue to compete with other Property/Casualty and Life Insurance Companies. The first Bailut should have never happened and now we as a Nation our being asked to fork over more American Hard Earned Dollars. Foe what? A mismanaged elephant in the room. It is passed time to pull the plug and let the Free Market Competitve Market absorb the customers of AIG.
I sending some comments to my congressman this afternoon. It is unusual for this high majority of insurance professionals to feel the same about a troubled insurance carrier. The fact that AIG is allowed to continue to operate and offering premiums that are almost guarranteed to result in an underwriting loss is unacceptable. Hey guys, there is power in numbers. I’m sending the link to this IJ and comments to my congressman too. I suggest that you do the same.
please put this diseased puppy out of its misery
I thought the law already allowed for “Controlled Breakup”. It’s called bankruptcy! Get it Done.
AIG is not worth saving.
They’re afraid to use the term bankruptcy.
All of these developments regarding AIG once again give credence to the truism “you reap what you sow”.
So what does the bit about “cancelling the loan” mean? Does it mean AIG gets to keep the $60 billion (didn’t they burn thru it all already anyway) without having to repay the loan?
reasoning behind the gov not enabling AIG to fail is the loss of thousands of jobs and the security of an entire economy. However, I believe that gov impeding in the matter will provide short term security as the issue will continue to increase in severity as long as we reward undisciplined behavior. Simple reasoning has it that action should be followed by consequence; if consequence is superficially tampered with, consequence will simply delay it’s course and future problems will emerge.
Therefore, irrelevant of the problems that it will create, allow AIG to reap it’s consequence so that there can be a lesson to learn from by other striving entities…
Good Luck Insurance Industry
Ignortance abounds on this board and the insurance industry! If the gov’t wants to get any money out of this they need to sell the viable businesses.
ALl the “toxics” are ian the finanical products unit – the insurance is still making money.
Hey pal – Do you think about your mother when you say that?
Are penny stocks too big to fail?
Donna T is right, sell the insurance groups now while they still have customers and pay back the taxpayers.
Question: Yes the insurance side is making money…….so why havent they sold these units. Why doesn’t another Insurance company buy these “prized units”? The originial loan was to keep them above water WHILE THEY SELL THIS THING………BOTH SIDES.
Why hasn’t Lexington been sold? WHY???
I GUESS WE SHOULD LOOK THE OTHER WAY NEXT WEEK WHEN THEY ANNOUNCE A $60 BILLION LOSS. IT’S OK OUR INSURANCE SIDE IS MAKEING MONEY.
Honey It isn’t makeing THAT KIND OF MONEY!
Yea I’m ignoriant!!!!!!!!!!!!!! LOL
Hey all:
Donna & Jeff are right.
The gelt is there.
The Fed are not idiots.
They put up the green, because they KNEW they were getting an incredible bargain: assets about $1 Trillion…-and they could buy the thing for $85 Bil..I mean..hel-l-lo-o ?
ok so where do we go from here ?
Fine: break it up, but back to the “G” word..GELT !
They want to do a conversion so the preferred stocks are paid, but what about the “commoners”
Are they gonna get f’d..-or are Obama-Geithner coming to the rescue ?
If they don’t the lawsuits will fly !
My question exactly. I’ll be calling the White House and asking them to cancel MY loan (aka mortgage).
I agree. AIG should be liquidated, and the insurance industry absorb AIG going aways. This will help other insurance companies as policy holders look for new companies.
AIG who?
Take Care
So help me here, Tomahawk, I just saw that part of the latest deal is that AIG gets $60b more, and the gov’t converts their preferred to common … who knows at what price. So doesn’t that put the gov’t’s ‘new’ position without priority and therefore similarly f’d with every other commoner? That’s how I read these tea leaves. Agree?
Yesterday it was hard to believe it could get any stinkier for me.
Come on Hank get in there and bring this thing back to life I cant watch this train wreck any more
I don’t know Tomahawk, something doesn’t sound right with your reasoning. So what’s really going on is that the gov paid $85B so they would end up with $1 trillion in assets? Wow I guess we as taxpayers shouldn’t be worried then, since we’ll all be splitting $1 trillion worth of assets in a few years. Somehow I don’t think this is going to benefit the government…or the rest of us…or AIG for that matter since they are on the road straight to hell anyway.
I say after all that has happened, let them go and cut your losses. It’s AIG’s fault that they got themselves in this mess anyways. I don’t want to keep paying for them.
2-26-2009
It’s not get it done. It’s get er done.
AIG died the day the music stopped in September, 2008.
Tim and Barrack’s idea to break up AIG into 4-5 parts is the first smart idea the turkeys in Wash. have come up with since they Nationalized AIG. (I guess breaking up is hard to do).
AIG is insolvent and beyond the brink.
At some point the sacrificial death will have a major impact on the insurance industry, but delaying the funeral will not help.
Didnt the article say that the commercial PC units will be lumped together with the troubled asset?
since AIG had so many “successful” and profitable entities why can’t they get extensions and write downs on all the garbage and go on making money with all the successful and profitable entities and payoff all the bad stuff over a period of years (prob alot of years)…….the way it looks is that we (USA Citizens) will be doing it over many years anyway with nohing but our “extra” cash.
I believe that’s so. They’re overdue for their turn.
What goes around comes around…I believe the financial world will ultimately be better off with them.
I don’t understand how such a big insurance leader can fall into bankrupt
Stop bailing out these guys, all of them. I dont see anyone bailing me out! If I can’t pay my bills, I go under. If they can’t pay their bills, the feds pay them! I took a cut in my pay so I would not have to lay off my secretary. Just STOP! I am sick and tired of my tax dollars going for this crap!
Not Private Client Group. they are not for sale and are part of the commercial insurance division. They mean the direct auto, century 21, aigm etc. etc. which is in discussions with Zurich right now. I wish they would stop writing articles until they know how to get it right!
You need to understand that it is in the government’s interest to help AIG restructure itself versus it failing. AIG is interlinked into so many companies, 401K’s, pension plans, governments, teachers unions, insurances etc globally that AIG failing would undermine the global economy- and create a downward spiral that would create further global financial market crisis. the split up of aig is a good thing for it’s over 100K employees and for the record, if I understood everything correctly- no more money given to them- they renegotiated the deal and created spin-offs. you should have listened to their 10K call this morning so that you would understand ands top the whining.
Insurance Girl:
You don’t know what you’re talking about. Do you think that AIG is the only globally involved company? There are many other disciplined companies that can build on the ashes of AIG, which is the essence of a capitalist structure.
Do your homeworkd before you pounce on people who’s tax dollars are wasted.
I suggest you read the joint release from U.S. Treasury and Federal Reserve Board which Announces Participation in AIG Restructuring Plan – you are a day late on understanding the events of today- so do your homemwork
This AIG Bailout is getting beyond ridiculous.For years we have operated as a country on the premise of the free market system. We now have the Federal Government spending BILLIONS of dollars on a company thaat does and will continue to compete with other Property/Casualty and Life Insurance Companies. The first Bailut should have never happened and now we as a Nation our being asked to fork over more American Hard Earned Dollars. Foe what? A mismanaged elephant in the room. It is passed time to pull the plug and let the Free Market Competitve Market absorb the customers of AIG.
I sending some comments to my congressman this afternoon. It is unusual for this high majority of insurance professionals to feel the same about a troubled insurance carrier. The fact that AIG is allowed to continue to operate and offering premiums that are almost guarranteed to result in an underwriting loss is unacceptable. Hey guys, there is power in numbers. I’m sending the link to this IJ and comments to my congressman too. I suggest that you do the same.
Donna, you might want to use spell check when you are calling people ignorant.