November 10th, 2008 12:01 pm | by John Jansen |

In response to the less onerous terms of the government rescue package AIG 10 year bonds have catapulted from the 30s to the 50s.

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  1. 4 Responses to “AIG”

  2. By fredw on Nov 10, 2008 | Reply

    AIG wil cost taxpayers at least a trillion bucks ….. Anyone really disagree with this ? FNM and FRE collectively will cost the taxpayers a trillion dollars… does anyone really disagree with that ? We’ve allegedly spent (including AIG today )about 210 billion of the 250 allegedly allocated to bank like injections…. yet there are thousands of public and private banks and bank like entities filing applications for funds – due date 11/14…. does anyone believe 40 billion addresses funding needs for those bank and bank like entities unfunded to date ? And we haven’t discussed the GM/ F and Chrysler requests for money ( 25 /50 100 billion ? ? ) and of course , who’s next ?

  3. By SplendidMarbles on Nov 10, 2008 | Reply

    Everyone is next. Just about every company, whether they’re retailers or car manufacturers, became finance companies over the past decade. Their lobbyists are all lining up to get some help.

  4. By fredw on Nov 11, 2008 | Reply

    Splendid… 290 billion out of the first 350 billion of the first TARP tranche has been committed by Paulson.. where does the money come from ? Even if the second tranche is approved , there are thousands of public and private banks ( let alone non- financials like auto makers seeking Hank’s money ) trying to grab crumbles off the table. Where’s the money going to come from ? I think the panic hits when the realization occurs the money train has left the station…. And by the way , AIG is already scheming to revise the terms from yesterday ( see today’s story regarding same in clusterstock. )

  5. By David on Nov 12, 2008 | Reply

    I don’t think AIG will cost the government one cent. They will make a substantial profit from it. However it will take 4-5 years to be sure.

    They own 80% of it. It was worth $170B just a few years ago and will probably be worth that again in less than 10 years. That is $136B right there for the government. They have taken on about $90B in subprime CDOs and RMBS but only payed 50 cents in the dollar. I doubt they will lose any money on these given what they payed. But if they do lose $20-30B, that is nothing compared to 80% equity in a cleaned up AIG. There is also the interest that they will collect. If the government is going to lose any money on this deal then we all have worse things to worry about (like finding food and fending off wild animals).

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