http://biz.yahoo.com/bw/080923/20080923006681.html?.v=1 Contact: American International Group, Inc. Charlene Hamrah (Investment Community) 212-770-7074 or Nicholas Ashooh (News Media) 212-770-3523
and it keeps going down, and i can just watch... already down 20% since my "imaginary" entry.. the great trading days with shorting down (and squeezing up) those financial garbage are over...
The details of the deal disclosed today are incredibly harsh. For the unused part of the loan, AIG pays 8.50% a year while 11.50% on the used part. This on top of an immediate 2% fee which amounts to 1.7 billion. This means they have no other alternative but to sell the farm and come up with the full 85b. And as per the agreement, if they can't, then raise equity. What do they really want? Put pressure on the committee of shareholders to come up with private money quickly -provided the deal can be undone and they can save face gently-? Or they are trying to defuse a nuke by deactivating its parts rapidly?