The smoke and mirrors show continues with AIG speaking in terms of “minimal” losses. Then again a billion here and a billion there, what the hell. Here’s what is going to occur. IF AIG needs to again increase their reserve position, which is an inevitable fact, in either the first or second quarter of this year, the rating agencies will have no other alternative but to downgrade the overall group. I would suspect that Chartis could well see an -A, which would severely curtail their ability to underwrite a substantial amount of their current book. Having called the demise of AIG in September 2007 a full year before it occurred, let me suggest that it is a real possibility that Chartis could be in run off by first quarter of 2012, if the call by Sanford Bernstein last year that they were $11.5 billion short in reserves becomes reality. AIG has for years under reserved their book, and this could well be the tipping point of their entire operation.
I know, I heard the boo birds by the score in 2007, let’s just see what the first and second quarters bring and then we’ll have a fair idea as to the overall efficacy of this group.
When you have Turbo Tax Tim behind you, why worry? Too big to fail, remember that? They are far from being out of the woods with this group. They also just finally settled their problems with the bid rigging scandal for I believe 27 Million.
It was not Geitner’s idea to bail out AIG. It was the idea of his predecessor, Henry Paulson. Notice I did not resort to calling him a silly name. The action speaks for itself.
Might want to check your facts as AIG wasn’t on the hook for the whole $27MM. Several other carriers also paid: Liberty, Travelers, Hartford, and Crum & Forester, not to mention some of the big brokers: Aon, Willis, and AJG.
Marsh and Zurich previously paid the piper to get out of the settlement too.
It may not have been Turbo Tim’s idea to bail out AIG, but he was at the Fed in NY which was involved and he has been involved with AIG for 2 1/2 years with all their fancy financial dealings, sales of assets etc etc. He is the one now that would have to bail out AIG if they need further assistance due to their myriad of problems. The taxpayers will never see a full return from this outfit and AIG will probably negotiate a reduced amount of payback in order to get out from the bailout.
So, even though Henry Paulson orchestrated this deal basically to save Goldman Sachs, his former employer, it’s really Tim Geitner’s fault? If this is a little over your head and you don’t understand the relationship between AIG – Paulson – Goldman, I will understand. What is the sense in being fair when you can find another excuse to use Gietner’s over-used (especially on this site) nick name? Cheap laughs trump facts, I suppose.
Turbo Tax Tim’s reputation is well deserved. All one has to do is look at what he has been doing the past 2+ years to see it. He and Bernanke has been monitizing our debt big time, printing money 24/7 and in part the reason why we are seeing inflation starting to eat us up on all goods and services. Amazing that you are defending his actions.
The smoke and mirrors show continues with AIG speaking in terms of “minimal” losses. Then again a billion here and a billion there, what the hell. Here’s what is going to occur. IF AIG needs to again increase their reserve position, which is an inevitable fact, in either the first or second quarter of this year, the rating agencies will have no other alternative but to downgrade the overall group. I would suspect that Chartis could well see an -A, which would severely curtail their ability to underwrite a substantial amount of their current book. Having called the demise of AIG in September 2007 a full year before it occurred, let me suggest that it is a real possibility that Chartis could be in run off by first quarter of 2012, if the call by Sanford Bernstein last year that they were $11.5 billion short in reserves becomes reality. AIG has for years under reserved their book, and this could well be the tipping point of their entire operation.
I know, I heard the boo birds by the score in 2007, let’s just see what the first and second quarters bring and then we’ll have a fair idea as to the overall efficacy of this group.
Be well all.
When you have Turbo Tax Tim behind you, why worry? Too big to fail, remember that? They are far from being out of the woods with this group. They also just finally settled their problems with the bid rigging scandal for I believe 27 Million.
It was not Geitner’s idea to bail out AIG. It was the idea of his predecessor, Henry Paulson. Notice I did not resort to calling him a silly name. The action speaks for itself.
Might want to check your facts as AIG wasn’t on the hook for the whole $27MM. Several other carriers also paid: Liberty, Travelers, Hartford, and Crum & Forester, not to mention some of the big brokers: Aon, Willis, and AJG.
Marsh and Zurich previously paid the piper to get out of the settlement too.
It may not have been Turbo Tim’s idea to bail out AIG, but he was at the Fed in NY which was involved and he has been involved with AIG for 2 1/2 years with all their fancy financial dealings, sales of assets etc etc. He is the one now that would have to bail out AIG if they need further assistance due to their myriad of problems. The taxpayers will never see a full return from this outfit and AIG will probably negotiate a reduced amount of payback in order to get out from the bailout.
So, even though Henry Paulson orchestrated this deal basically to save Goldman Sachs, his former employer, it’s really Tim Geitner’s fault? If this is a little over your head and you don’t understand the relationship between AIG – Paulson – Goldman, I will understand. What is the sense in being fair when you can find another excuse to use Gietner’s over-used (especially on this site) nick name? Cheap laughs trump facts, I suppose.
Turbo Tax Tim’s reputation is well deserved. All one has to do is look at what he has been doing the past 2+ years to see it. He and Bernanke has been monitizing our debt big time, printing money 24/7 and in part the reason why we are seeing inflation starting to eat us up on all goods and services. Amazing that you are defending his actions.