Bailout for AIG?

[Bindare_Dundat]

Gov. David Paterson just announced that the state is moving to help bail out American International Group, AIG, which faces a potential credit downgrade that would destroy the firm.

The Paterson administration , particularly Insurance Commissioner Eric Dinallo, has been working with the Federal Reserve to find ways to provide assistance to the firm.

The state’s plan would be to take steps to allow AIG to collateralize its own holdings (subsidiaries that are not liquid), up to $20 billion, so that it can apply for bridge loans.

Paterson emphasized that this will not cost taxpayers a dime nor will the move  pose a risk to AIG policy holders.

AIG is seeking a $40 billion bridge loan from the federal government to help it get through this crisis.

[Bindare_Dundat]

Concerns are mounting about the future of US insurance giant AIG as investors fear a domino effect in the aftermath of Lehman Brothers' collapse.

Credit ratings agencies, which assess the riskiness of debt, have downgraded AIG - making it more difficult for the firm to borrow money.

New York Governor David Paterson said AIG had one day to raise up to $80bn to stave off bankruptcy.

AIG shares fell 70% in early trade, having fallen 61% on Monday.

Talks between financial firms and officials aimed at helping the struggling insurer are taking place.

"We're in the moment right now as to whether or not they can put something together," Mr Paterson said.


Look out!

[240 is Back]

lucky thing we can print all the $ we want without consequence!

[Bindare_Dundat]

The US Federal Reserve has announced an $85bn (£48bn) rescue package for AIG, the country's biggest insurance company, to save it from bankruptcy.

The plan involves a loan in return for an 80% public stake in the company.

AIG, which has a trillion dollars in assets and insures bank loans around the world, said it was continuing efforts to increase its liquidity.

The rescue prompted a shares rally in Asia, with Japan's market up 2% in early trading.

Correspondents say AIG's demise would have a far greater impact on the world's financial markets than that of the US investment bank Lehman Brothers on Monday.

The collapse of AIG would mean that many banks and investment funds in the US and around the world would lose their insurance cover at a time when defaults on payments are likely to rise.

Emergency meeting

Treasury Secretary Henry Paulson and Ben Bernanke, the chairman of the central bank, the Federal Reserve, met senior members of Congress on Tuesday to brief them on the AIG bailout

[MB_722]

warning** extreme comment


what if there were riots because of this? This is too much already. Imagine if people stopped paying their taxes because of this 

Think if this happened in the 60's or 70's there would be riots?

[Bindare_Dundat]

warning** extreme comment


what if there were riots because of this? This is too much already. Imagine if people stopped paying their taxes because of this

Think if this happened in the 60's or 70's there would be riots?

I can dream, can't I?

Ordinary people are too stupid to do the right thing untill it's too late. They have this belief that the government is going to be there to help them, when it's the government that's fisting them, dry and deep.

[MB_722]

when it's the government that's fisting them, dry and deep.

haha! nice line 

[Cap]

I can dream, can't I?

Ordinary people are too stupid to do the right thing untill it's too late. They have this belief that the government is going to be there to help them, when it's the government that's fisting them, dry and deep.

Ordinary people are the cause of this.  Ordinary people all went out and bought houses with little or no money down, no credit history or income and then they walked away from their houses.  Then big banks buy these bundles of loans and take the losses and the ordinary idiots just walk away.

[Hugo Chavez]

Don't worry, McCain announced today that he'll solve this with a commission like the 9/11 commission

[240 is Back]

Don't worry, McCain announced today that he'll solve this with a commission like the 9/11 commission

LehmanTruth.org

[loco]

warning** extreme comment


what if there were riots because of this? This is too much already. Imagine if people stopped paying their taxes because of this 

Think if this happened in the 60's or 70's there would be riots?

Wouldn't it be even worse if enough people panic and start taking all their money out of banks and financial institutions?

[Cap]

Wouldn't it be even worse if enough people panic and start taking all their money out of banks and financial institutions?

Kinda like all the people that did that with Indymac??

[loco]

Kinda like all the people that did that with Indymac??

Exactly, but that was just one bank.  Now imagine the same happening to many banks at the same time, and what that would do to the US and world economy.

[Cap]

Exactly, but that was just one bank.  Now imagine the same happening to many banks at the same time, and what that would do to the US and world economy.

Well, people are stupid.  Indymac would have been just fine but people panic.

The same morons that caused the housing crisis are going to blame the gov't.  The idiots that collapse these banks by pulling their money out (and also from defaulting on home loans) will blame the banks and the gov't.  People will always fuck themselves and blame the gov't.

[Bindare_Dundat]

Well, people are stupid.  Indymac would have been just fine but people panic.

The same morons that caused the housing crisis are going to blame the gov't.  The idiots that collapse these banks by pulling their money out (and also from defaulting on home loans) will blame the banks and the gov't.  People will always fuck themselves and blame the gov't.

Both share responsilbity.

[TerminalPower]

This is where Repukens and demicrits show how stupid they are.  Total Bullshit!  Then these fucking idiots go BK.  ALL OF THEM!

[loco]

Well, people are stupid.  Indymac would have been just fine but people panic.

The same morons that caused the housing crisis are going to blame the gov't.  The idiots that collapse these banks by pulling their money out (and also from defaulting on home loans) will blame the banks and the gov't.  People will always fuck themselves and blame the gov't.

Exactly, no personal responsibility.

[Cap]

Both share responsilbity.

The banks should never have given the loans but the people should have realized they never could have afforded to take out the loans and make the payments.  These same people are going to bitch to the gov't to bail out their poor decisions and are also going to blame Bush.  If you can't afford to buy in your area either keep renting or move where you can afford but these people were absolutely retarded to think they could afford a mortgage with no money down.  That payment would be outrageous.

[Dos Equis]

September 17, 2008
Biden waffles on AIG bailout
Posted: 07:29 PM ET

From CNN Political Producer Alexander Marquardt

WOOSTER, Ohio (CNN) - A day after saying the federal government should not come to the rescue of insurance giant AIG, Democratic VP nominee Joe Biden shifted his position Wednesday, saying he needs to get more details on the terms of the $85 billion bailout.

"The truth is I don't know what the bailout is yet," Biden said Wednesday afternoon in Maysfield, Ohio. "It looks like they're lending them a little bit of money. I don't know what they've done, I haven't had a brief on it. I haven't spoken to the Secretary of the Treasury."

Biden's answer struck a different tone than his Tuesday reaction. "No, I don't think they should be bailed out by the federal government, I'll tell you what we should do," he said on NBC's Today Show. "We should try to correct the problems that caused this. And what's caused this? The profligate tax cuts to the very, very wealthy that John [McCain] wants to continue. What has caused this is the failure to have regulation…It's this government's policies that have caused [the middle class] to get in great trouble."

Before Biden's Wednesday comments, Barack Obama released a statement saying that any arrangement should protect families that count on the company's insurance.

"It should bolster our economy's ability to create good-paying jobs and help working Americans pay their bills and save their money. It must not bail out the shareholders or management of AIG," said Obama.

A spokesman for the Delaware senator released a statement Wednesday aligning Biden with Obama.

"Joe Biden made it clear that nobody likes bailouts, and we should never have been put in this deep hole as a country," said spokesman David Wade. "Taxpayers shouldn't have to be asked to clean up another mess. But here we are. Senator Obama and Senator Biden agree that whatever happens, the Fed needs to make sure it protects the families that count on insurance, bolsters our ability to create good-paying jobs, and helps working Americans pay their bills and save their money. The answer isn't to bail out the shareholders or management of AIG."

http://politicalticker.blogs.cnn.com/2008/09/17/biden-waffles-on-aig-bailout/#more-19053

[240 is Back]

Imagine, a guy wanting more information on an event that's 12 hours old before making a decision on it.

[Bindare_Dundat]

Imagine, a guy wanting more information on an event that's 12 hours old before making a decision on it.

These guys had plenty of time to think about this.