AIG Facing Liquidity Crisis, Seeks $40 Billion Loan from Federal Reserve

September 14, 2008

  • September 15, 2008 at 4:15 am
    matt says:
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    Agree they are a vital part of the market… but something else would fill their void.

    When there are no suitors, no other capital, they ask the fed for not 40 million, but 40 Billion dollars?

    I think the Fed needs to make the right call and tell AIG that the B in their $40B request should stand for their new S&P rating and not a bridge loan offer.

    I checked the stock price this morning. It was trading at $7.04. Didn’t AIG trade for > $70 in the last year? Wow.

    All of the “accounting gimick” chickens seem to be coming home to roost at the same time. We all know AIG was no stranger to accounting schenanigans. Their chickens are roosting, and why should the FED bail them out? They shouldn’t.

  • September 15, 2008 at 4:17 am
    matt says:
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    Danny, you are partly correct in your description of the Fed.

    Let’s go the extreme interpretation and say the Fed is a 100% private entity. If that’s the case wouldn’t they have to be “bat-youknowwhat crazy” to lend AIG $40,000,000,000.00?

  • September 15, 2008 at 4:23 am
    Danny says:
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    Matt, what if they ended up with most of the profitable assets as payback?

  • September 15, 2008 at 4:30 am
    Danny says:
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    JP Morgan Chase bought them at $2.00 per share.

  • September 15, 2008 at 5:22 am
    Danny says:
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    Follow this link for more info on the Fed.
    http://land.netonecom.net/tlp/ref/federal_reserve.shtml

  • September 15, 2008 at 5:49 am
    mike says:
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    I want a govt loan too
    too bad aint gonna happen

  • September 16, 2008 at 11:04 am
    Zhi says:
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    Don’t give up on AIG. Talk to the Chin, they have over 1.3 trillion. US80 billion is nothing to them! AIG is a strong brand and have a sound history of helping retirees with annuity plans.

    The crisis will end soon, don’t give up think of the people and their retirement funds. Please, thanks don’t give up an international icon. SOS.

  • September 16, 2008 at 6:12 am
    NEXT !!! says:
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    Cincinnati said it had sold most of the $24 million of Lehman preferred stock and debt securities held at June 30, and expects to take a related charge of $9 million in third quarter.

    Lehman Brothers, once an investment banking giant, filed for bankruptcy protection on Monday after trying to finance too many risky assets with too little capital.

    Cincinnati, which still holds securities of American International Group Inc worth about $81 million as of September 15, sees an impairment charge of about $50 million from securities related to the mortgage giants Fannie Mae and Freddie Mac.

    Isn’t this a nice portfolio ?? And it doesn’t even mention Fifth Third Bank !



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