Oct. 24 (Bloomberg) -- American International Group Inc. has used $90.3 billion of a U.S. government credit line since it was bailed out last month, an amount that exceeds the size of the original loan meant to save the insurer. AIG may need more than the $122.8 billion now available to the New York-based insurer, Chief Executive Officer Edward Liddy said Oct. 22. The company, which agreed Sept. 16 to turn over majority control to the U.S. in exchange for an $85 billion loan, got access to an additional $37.8 billion this month. AIG's latest balance was revealed yesterday by the New York Federal Reserve, and is up from $82.9 billion a week ago. http://www.bloomberg.com/apps/news?pid=20601087&sid=aBUTyJp.qgLI&refer=home
let those BASTARDS go under there's no excuse for an insurance company going under - EVER every risk is to be actuaraly hedged, with reinsurance for excess liabilty these BASTARDS didnt do their job, and they lavish money on themselves
The sad thing is ... because AIG is considered too big to fail, they'll get whatever amount of "money" they want. They could go and spend $1 billion on another conference for their senior management, and it wouldn't matter. Rightly or wrongly, they're too big to fail.
I'm not so sure. fed couldn't lend to LEH because of lack of collateral. if AIG runs out of that they will need the TARP
They spent 400k on their conference, that looks bad. To improve their image they hired a pr firm that may cost as much as 100-200k a month to improve thier image.
Paulson won't let that happen, Goldman is counter party to mega $$$$$ with AIG. If AIG goes under Goldman will suffer huge losses. Most of the AIG money has gone to Goldman.
I understand that this is true -- the part about GS exposed hugely to AIG. It appears that we the public are held hostage to that fact and facts similar to it.
This is getting out of control... WASHINGTON -- The Treasury Department is considering taking equity stakes in insurance companies, a sign of how the government's $700 billion program has become a potential piggybank for a range of troubled industries. The availability of government cash is drawing requests from all corners, with insurance firms, automakers, state governments and transit agencies lobbying for a piece of Treasury's pie. While Treasury intended for the program to apply broadly, the growing requests could rapidly deplete the $700 billion, an amount that initially stunned many as being quite large. http://online.wsj.com/article/SB122487244838367321.html?mod=googlenews_wsj