Thanks, Paulson & Bernanke! Great investment there in backstopping AIG! 50 cents a share and tanking, after over 170 billion of taxpayer ransom money!!! 6000 here we come...
a $60b loss for the quarter ...thats quite unbelievable ... what a fricken black hole for the taxpayers.
CNBC's Faber reports that the co is in discussion with the govt to secure additional funds so it can keep operating after next Monday, when it will report the largest loss in corp history. Sources say the losses will be near, if not exceeding, $60 bln due to write-downs on a variety of assets. The loss is likely to trigger downgrades of its insurance and credit ratings, which will force the co to raise collateral. As well it its book value falls below a certain value, which it is certain to do, it will trigger defaults in certain of its debt instruments, according to people familiar with the situation. Talks are focused on whether the co can swap some of the debt held by the govt for equity in the co. The only problem with this is that the govt's ownership stake can't exceed 79.9%. If it can't meet the collateral calls, AIG is preparing for the possibility of bankruptcy; although a bankruptcy is unlikely, a bankruptcy of the holding company might not pose the systemic risk it once did.
You can say that again! Bernanke made an incredibly dumb assessment of thinking that the CDS exposure was "limited" . . . And thank Phil Gramm for the "Commodity Futures Modernization Act of 2000" that created the CDS exposure, exempt from any kind of regulation.
Now BofA has decided to join AIG and interfere with the D0J's investigation - according to reports. You just can't make this shit up.
Very disappointing day, this is turning into a bottomless pit of shit. The bad news just keeps a comin'..... AIG needs more money???? Are you kidding me!!!??? I know I am not the first to say this, but the good ole US of A will not be coming out of this whole mess, in any form of the great country we used to inhabit. Seems like Everything is falling apart at the seams right now...