As for the AIG bailout, I despise them as a company. However, could you imagine the chaos in the world insurance market had AIG been allowed to collapse? All other insurers combined would not have had the capacity to assume the risks written by AIG. They had a significant piece of every major industry on the globe for P&C, D&O, E&O, aviation…you name it. IMHO, it would have dramatically affected the world’s economy. Sad, but true.
Will the arrogance of the AIG employee never end. “All other insurers combined would not have had the capacity to assume the risks written by AIG.” What a joke. The industry has the capacity and expertise many times over to write the AIG insurance book.
Are the rest of us stupid enough to write hundreds of billions of dollers of credit default swaps which aren’t even insurance and which threatened to take down the world economy. NO, OF COURSE NOT. Doing that takes a level of stupidity and arrogance unmatched in the history of the world. Only at AIG!
Retired, I have heard that AIG had the Pension Plan for Congress. If true, no wonder they were bailed out. Can you imagine all these Congressmen/Senators seeing their pension go up in smoke? There was no way they were going to let them fail.
Retired, you are right. I saw an article last week that there is another push on for making home loans more affordable by granting loans to less qualified buyers. I guess they haven’t learned the lessons of the sub-prime meltdown which wrecked the economy. You are absolutely correct about AIG. They have been a crooked company for many years going back to the bid rigging schemes with Marsh. All these new Dodd-Frank regulations are driving the community banks out of business or they have to merge with larger banks. I know because I just lost one. The main reason is Dodd-Frank. They have been penalized for the excesses of the big boys.
Dodd/Frank is a joke. The day after Obummer signed the bill there was a big fund raiser for him hosted by Goldman Sachs at $35,000 a ticket. Dodd/Frank does very little and the banksters already know how to get around the Volker rule.
I’ve heard reinstating Glass/Steagall and repealing the CFTC Modernization Act is a step in the right direction.
When you belong to the “in crowd”, you have it made. All you have to do is grease the right palms and make contributions to the Democratic Party and you have no fears of getting in trouble, because they will not let you fail.
When you belong to the “in crowd”, you have it made. All you have to do is grease the right palms and make contributions to the Republican Party and you have no fears of getting in trouble, because they will not let you fail.
I like what I’m hearing in this article, especially the part about the “living will”. Make all the counterparties know for sure where they stand in the pecking order, make them understand there will be no government bailout next time, and they will price the risk into the transactions. And hopefully the investors don’t let their guard down during the next expansion, and continue to expect compensation for systemic risk – and maybe curb some of the complex derivatives transactions along the way.
The rating agencies need to be put under the regulatory microscope next. Their ratings allowed for a lot of bad investments which caused serious financial harm to municipalities as well as families.
As for the AIG bailout, I despise them as a company. However, could you imagine the chaos in the world insurance market had AIG been allowed to collapse? All other insurers combined would not have had the capacity to assume the risks written by AIG. They had a significant piece of every major industry on the globe for P&C, D&O, E&O, aviation…you name it. IMHO, it would have dramatically affected the world’s economy. Sad, but true.
Will the arrogance of the AIG employee never end. “All other insurers combined would not have had the capacity to assume the risks written by AIG.” What a joke. The industry has the capacity and expertise many times over to write the AIG insurance book.
Are the rest of us stupid enough to write hundreds of billions of dollers of credit default swaps which aren’t even insurance and which threatened to take down the world economy. NO, OF COURSE NOT. Doing that takes a level of stupidity and arrogance unmatched in the history of the world. Only at AIG!
Retired, I have heard that AIG had the Pension Plan for Congress. If true, no wonder they were bailed out. Can you imagine all these Congressmen/Senators seeing their pension go up in smoke? There was no way they were going to let them fail.
Retired, you are right. I saw an article last week that there is another push on for making home loans more affordable by granting loans to less qualified buyers. I guess they haven’t learned the lessons of the sub-prime meltdown which wrecked the economy. You are absolutely correct about AIG. They have been a crooked company for many years going back to the bid rigging schemes with Marsh. All these new Dodd-Frank regulations are driving the community banks out of business or they have to merge with larger banks. I know because I just lost one. The main reason is Dodd-Frank. They have been penalized for the excesses of the big boys.
Dodd/Frank is a joke. The day after Obummer signed the bill there was a big fund raiser for him hosted by Goldman Sachs at $35,000 a ticket. Dodd/Frank does very little and the banksters already know how to get around the Volker rule.
I’ve heard reinstating Glass/Steagall and repealing the CFTC Modernization Act is a step in the right direction.
When you belong to the “in crowd”, you have it made. All you have to do is grease the right palms and make contributions to the Democratic Party and you have no fears of getting in trouble, because they will not let you fail.
When you belong to the “in crowd”, you have it made. All you have to do is grease the right palms and make contributions to the Republican Party and you have no fears of getting in trouble, because they will not let you fail.
I like what I’m hearing in this article, especially the part about the “living will”. Make all the counterparties know for sure where they stand in the pecking order, make them understand there will be no government bailout next time, and they will price the risk into the transactions. And hopefully the investors don’t let their guard down during the next expansion, and continue to expect compensation for systemic risk – and maybe curb some of the complex derivatives transactions along the way.
The rating agencies need to be put under the regulatory microscope next. Their ratings allowed for a lot of bad investments which caused serious financial harm to municipalities as well as families.