It will dwarf all those others, Lehman, Merrill Lynch, Bear Sterns, etc.
We are fked kids. Completely fuked!
:scared :scared :scared :scared
We are fked kids. Completely fuked!
:scared :scared :scared :scared
If AIG fails
- Thread starter Agent 0659
- Start date
why
do you work for AIG or something ?
At first I thought my wifes 401 K was linked to them , but its not.
do you work for AIG or something ?
At first I thought my wifes 401 K was linked to them , but its not.
I haven't heard anything close to that:shrug:
They'll drop the interest rate to get money again, and all will be well with the stock/corporate/college ejumacated coke heads.
Fed leaves rate the same. The market strain is higher than ever before. If AIG goes under it will be the closest thing to the depression since the depression. We might get there.
You better have some cash handy!
:scared :scared :scared :scared :scared
Let's spend another trillion in Irag chasing the boogy man.
You better have some cash handy!
:scared :scared :scared :scared :scared
Let's spend another trillion in Irag chasing the boogy man.
You can start firing out all the unbias clues on this topic any time now.
"Well. We're waiting"
You can start firing out all the unbias clues on this topic any time now.
"Well. We're waiting"
It's the WORLDS LARGEST INSURER.
If you can't understand the devastation that would have on an already cracking and failed economy, far be it from me to sit here and explain it.
Unlike Lehman [LEH 0.21 --- UNCH (0.24) ], which really only had Neuberger Berman, AIG [AIG 4.05 -0.71 (-14.92%) ] has plenty of assets that the company can sell to raise the capital needed to stay in business.
http://www.cnbc.com/id/26720594
:0corn
http://www.cnbc.com/id/26720594
:0corn
AIG's cash hunt in high gear
Stock of nation's largest insurer plummets after being hit by credit raters. NYS aid comes with strings.
By Tami Luhby, CNNMoney.com senior writer
Last Updated: September 16, 2008: 1:13 PM EDT
NEW YORK (CNNMoney.com) -- Shares of American International Group tumbled Tuesday as the company scrambled to raise as much as $75 billion to keep itself afloat.
The nation's largest insurer is looking for a lifeline from the Federal Reserve Bank. Though federal officials had indicated they would not bail out AIG, it's unclear if they will maintain that stance as the company falters.
AIG is also counting on Goldman Sachs (GS, Fortune 500) and JPMorgan Chase (JPM, Fortune 500), with the help of the Fed, to cobble together a $70 billion to $75 billion line of credit funded by a consortium of lenders. However, any discussions are very preliminary, a source close to the matter told CNNMoney.com.
NYS aid contingent on overall deal
Meanwhile, more details surfaced on the action New York State took Monday. Regulators will allow Manhattan-based AIG to tap into $20 billion in assets from its subsidiaries only if the company comes up with a comprehensive plan to get the much-needed capital, said a state Insurance Department spokesman.
"It has to be part of the solution to the problem," said spokesman David Neustadt.
New York Gov. David Paterson said Monday that AIG could transfer $20 billion in assets from its subsidiaries to use as collateral for daily operations. In exchange, the parent company would give the subsidiaries less-liquid assets of the same value. He stressed the company is financially sound and that no taxpayer dollars are involved.
Also, the Fed has hired Morgan Stanley (MS, Fortune 500) to examine alternatives for AIG and determine whether the government should help the insurer, a source said.
The Fed and the investment banks declined comment.
The funding became ever more crucial as the insurer was hit Monday night by a series of credit rating downgrades. The cuts could prove deadly to AIG (AIG, Fortune 500) and force it to post more than $13 billion in additional collateral. Shares were down 35% in mid-day trading after falling more than 70% in early morning trading and losing 61% of their value the day before.
Late Monday night, Moody's Investors Service and Standard & Poor's Ratings Services each said they had lowered their ratings. A few hours earlier, Fitch Rating had also downgraded AIG, saying the company's ability to raise cash is "extremely limited" because of its plummeting stock price, widening yields on its debt, and difficult capital market conditions.
The downgrade could force AIG to post $13.3 billion of collateral, Fitch said in a statement, citing AIG's July 31 estimates. Also, the moves will make it more expensive for AIG to issue debt and harder for it to regain the confidence of investors.
AIG did not immediately reply to a request for comment on the late-night downgrades. Earlier Monday, spokesman Nicholas Ashooh told CNNMoney.com the company is "still evaluating alternatives."
Analysts say the company must unveil its restructuring plan soon.
"Management needs to address investor concerns now before the market sell-off becomes a self-fulfilling prophecy," said Rob Haines, analyst at CreditSights.
Global ripples if firm were to fail
If AIG were to fail, the global ripple effects would be unprecedented, said Robert Bolton, managing director at Mendon Capital Advisors Corp. It has $1 trillion in assets and operates in 130 countries.
AIG is a major player in the credit default swaps market, an insurance-like contracts that guarantee against a company defaulting on its debt. Also, it is a huge provider of life insurance, property and casualty insurance and annuities.
"If AIG fails and can't make good on its obligations, forget it," Bolton said. "It's as big a wave as you're going to see."
The grim assessments came after a day in which state and federal officials raced to help the insurer gain access to much needed cash. The company has lost more than $18 billion in the past nine months.
Wall Street had expected AIG to issue a restructuring plan Monday that would address its capital crunch and boost investor confidence. But the company, a component of the benchmark Dow Jones industrial average, remained silent.
Investors punished the stock, sending it down 61% to close at $4.76 on Monday. The company, which has been rocked by the subprime crisis, has seen its stock price fall more than 91% so far this year.
The restructuring plan was expected to include the sale of assets. The ailing company, which had planned to announce a turnaround strategy on Sept. 25, is being forced to accelerate the announcement after investors fled the stock last week.
The company is likely to sell its personal insurance and annuities businesses and the aircraft leasing unit, wrote Joshua Shanker, a Citigroup analyst, who believes the company might have to mark down another $30 billion in assets.
"We believe AIG will survive, but we have little indication of how many business lines will ultimately need to be sold and how dilutive to shareholders future capital raising efforts will be," Shanker wrote.
AIG, which already raised $20 billion in fresh capital earlier this year, has been pummeled by three quarters of huge losses and writedowns.
Its troubles stem from its sales of credit default swaps and from its subprime mortgage-backed securities holdings.
AIG has written down the value of the credit default swaps by $14.7 billion, pretax, in the first two quarters of this year, and has had to write down the value of its mortgage-backed securities as the housing market soured.
The insurer could be forced to immediately come up with $18 billion to support its credit swap business if its ratings fall by as little as one notch, wrote John Hall, an analyst at Wachovia.
But the company has many attractive businesses it could sell to raise capital, he said.
This year's results have also included $12.2 billion in pretax writedowns, primarily because of "severe, rapid declines" in certain mortgage-backed securities and other investments.
AIG has struggled all year as the Wall Street credit crunch took its toll.
In June, the company tossed out its chief executive, Martin Sullivan, who had been charged with turning the company around after directors removed longtime CEO Hank Greenberg in 2005. Greenberg was the target of one of then-Attorney General Eliot Spitzer's investigations.
The board named AIG chairman Robert Willumstad, who joined AIG in 2006 after serving as president and chief operating officer of Citigroup (C, Fortune 500), to replace Sullivan as chief executive officer.
Stock of nation's largest insurer plummets after being hit by credit raters. NYS aid comes with strings.
By Tami Luhby, CNNMoney.com senior writer
Last Updated: September 16, 2008: 1:13 PM EDT
NEW YORK (CNNMoney.com) -- Shares of American International Group tumbled Tuesday as the company scrambled to raise as much as $75 billion to keep itself afloat.
The nation's largest insurer is looking for a lifeline from the Federal Reserve Bank. Though federal officials had indicated they would not bail out AIG, it's unclear if they will maintain that stance as the company falters.
AIG is also counting on Goldman Sachs (GS, Fortune 500) and JPMorgan Chase (JPM, Fortune 500), with the help of the Fed, to cobble together a $70 billion to $75 billion line of credit funded by a consortium of lenders. However, any discussions are very preliminary, a source close to the matter told CNNMoney.com.
NYS aid contingent on overall deal
Meanwhile, more details surfaced on the action New York State took Monday. Regulators will allow Manhattan-based AIG to tap into $20 billion in assets from its subsidiaries only if the company comes up with a comprehensive plan to get the much-needed capital, said a state Insurance Department spokesman.
"It has to be part of the solution to the problem," said spokesman David Neustadt.
New York Gov. David Paterson said Monday that AIG could transfer $20 billion in assets from its subsidiaries to use as collateral for daily operations. In exchange, the parent company would give the subsidiaries less-liquid assets of the same value. He stressed the company is financially sound and that no taxpayer dollars are involved.
Also, the Fed has hired Morgan Stanley (MS, Fortune 500) to examine alternatives for AIG and determine whether the government should help the insurer, a source said.
The Fed and the investment banks declined comment.
The funding became ever more crucial as the insurer was hit Monday night by a series of credit rating downgrades. The cuts could prove deadly to AIG (AIG, Fortune 500) and force it to post more than $13 billion in additional collateral. Shares were down 35% in mid-day trading after falling more than 70% in early morning trading and losing 61% of their value the day before.
Late Monday night, Moody's Investors Service and Standard & Poor's Ratings Services each said they had lowered their ratings. A few hours earlier, Fitch Rating had also downgraded AIG, saying the company's ability to raise cash is "extremely limited" because of its plummeting stock price, widening yields on its debt, and difficult capital market conditions.
The downgrade could force AIG to post $13.3 billion of collateral, Fitch said in a statement, citing AIG's July 31 estimates. Also, the moves will make it more expensive for AIG to issue debt and harder for it to regain the confidence of investors.
AIG did not immediately reply to a request for comment on the late-night downgrades. Earlier Monday, spokesman Nicholas Ashooh told CNNMoney.com the company is "still evaluating alternatives."
Analysts say the company must unveil its restructuring plan soon.
"Management needs to address investor concerns now before the market sell-off becomes a self-fulfilling prophecy," said Rob Haines, analyst at CreditSights.
Global ripples if firm were to fail
If AIG were to fail, the global ripple effects would be unprecedented, said Robert Bolton, managing director at Mendon Capital Advisors Corp. It has $1 trillion in assets and operates in 130 countries.
AIG is a major player in the credit default swaps market, an insurance-like contracts that guarantee against a company defaulting on its debt. Also, it is a huge provider of life insurance, property and casualty insurance and annuities.
"If AIG fails and can't make good on its obligations, forget it," Bolton said. "It's as big a wave as you're going to see."
The grim assessments came after a day in which state and federal officials raced to help the insurer gain access to much needed cash. The company has lost more than $18 billion in the past nine months.
Wall Street had expected AIG to issue a restructuring plan Monday that would address its capital crunch and boost investor confidence. But the company, a component of the benchmark Dow Jones industrial average, remained silent.
Investors punished the stock, sending it down 61% to close at $4.76 on Monday. The company, which has been rocked by the subprime crisis, has seen its stock price fall more than 91% so far this year.
The restructuring plan was expected to include the sale of assets. The ailing company, which had planned to announce a turnaround strategy on Sept. 25, is being forced to accelerate the announcement after investors fled the stock last week.
The company is likely to sell its personal insurance and annuities businesses and the aircraft leasing unit, wrote Joshua Shanker, a Citigroup analyst, who believes the company might have to mark down another $30 billion in assets.
"We believe AIG will survive, but we have little indication of how many business lines will ultimately need to be sold and how dilutive to shareholders future capital raising efforts will be," Shanker wrote.
AIG, which already raised $20 billion in fresh capital earlier this year, has been pummeled by three quarters of huge losses and writedowns.
Its troubles stem from its sales of credit default swaps and from its subprime mortgage-backed securities holdings.
AIG has written down the value of the credit default swaps by $14.7 billion, pretax, in the first two quarters of this year, and has had to write down the value of its mortgage-backed securities as the housing market soured.
The insurer could be forced to immediately come up with $18 billion to support its credit swap business if its ratings fall by as little as one notch, wrote John Hall, an analyst at Wachovia.
But the company has many attractive businesses it could sell to raise capital, he said.
This year's results have also included $12.2 billion in pretax writedowns, primarily because of "severe, rapid declines" in certain mortgage-backed securities and other investments.
AIG has struggled all year as the Wall Street credit crunch took its toll.
In June, the company tossed out its chief executive, Martin Sullivan, who had been charged with turning the company around after directors removed longtime CEO Hank Greenberg in 2005. Greenberg was the target of one of then-Attorney General Eliot Spitzer's investigations.
The board named AIG chairman Robert Willumstad, who joined AIG in 2006 after serving as president and chief operating officer of Citigroup (C, Fortune 500), to replace Sullivan as chief executive officer.
......says the insurance peddler.
I'm thinking the world will be OK, and I work in an industry that is very dependant on the economy.
Your willing to elect Obama and COMPLETELY fk the economy and AIG has you worried ?
