Mr Realist and all intersted ( and UNinterested parties)can wonder about THIS:
Mr Benmosche is ill. We hope & expect him to be 100%.
Some months ago simply on word that he had spoken to Mr Greenberg, the value of the stock skyrocketed overnight.
NO ONE know AIG better, nor loves it more than Mr Greenberg.
And his help to Mr Benmosche and the Board would be priceless
It’s time for his return.
Better late, than never
If the company does sell back all (or some) of its debt, it will be at an extreme cost.
a) The company has shed important business units that it needs to help it as it exits government ownership (Asian life operations, Hartford Steam Boiler, Transatlantic Re, etc) that would be vital to its future growth
b) The company has seen a large exit of its most talented employees leave to competitors and laying off other employees who could add value to the bottom line.
c) Its organic growth model of growing the bottom line cannot work in this soft market. The company’s business units vastly underpriced business and with latent claims, reserve takedowns, etc….the company can only raise rates and/or write less business.
If the government does make a profit on these shares, will they view Bailouts as a revenue stream in the future?
Liking this to the GM deal, which was robbing Peter to pay Paul makes me wonder still……….
Mr Realist and all intersted ( and UNinterested parties)can wonder about THIS:
Mr Benmosche is ill. We hope & expect him to be 100%.
Some months ago simply on word that he had spoken to Mr Greenberg, the value of the stock skyrocketed overnight.
NO ONE know AIG better, nor loves it more than Mr Greenberg.
And his help to Mr Benmosche and the Board would be priceless
It’s time for his return.
Better late, than never
If the company does sell back all (or some) of its debt, it will be at an extreme cost.
a) The company has shed important business units that it needs to help it as it exits government ownership (Asian life operations, Hartford Steam Boiler, Transatlantic Re, etc) that would be vital to its future growth
b) The company has seen a large exit of its most talented employees leave to competitors and laying off other employees who could add value to the bottom line.
c) Its organic growth model of growing the bottom line cannot work in this soft market. The company’s business units vastly underpriced business and with latent claims, reserve takedowns, etc….the company can only raise rates and/or write less business.
This is not a rosy picture at all….