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American International Group, Inc. Message Board

  • vbjonc vbjonc Oct 14, 2008 8:11 PM Flag

    Greenbergs plan

    Hank now wants to get the gov't to retroactively change their loan plan to match the plan being given to other financial institutions.

    What do you think about:
    A) The likelihood of it to actually occur?
    B) The impact it will have on the stock price if he pulls it off?

    I'm thinking he will have a strong chance of succeeding, his logic makes sense, and I'm sure he has the political connections needed to make this happen.

    I am thinking if he can get the gov't to own less, then the shares will be worth more to us, so the stock should go up, substantially.

    Your thoughts?

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Unfortunately I don't think AIG will get a new agreement. From my understanding, the government will be investing in solvent/good banks. Banks that are on the brink of collpase will be treated AIG-style. AIG is the poster child for bad company bailouts.

    • politically it should not happen
      not fair for those companies that went under(LEHMAN....).
      and those non financial companies that need the help(GM,F..)
      if the terms to aig are based on greenbergs plan,then the feds have to help ALL.
      THE HIGH INTEREST AND THE OWNERSHIP CLAUSE FOR AIG IS EXCEPTIONAL AND NO ONE COMPANY COULD AFFORD.WHEN THINGS CALM
      DOWN YEARS FROM NOW,THINGS WILL CHANGE, THE TERMS WILL CHANGE .

      • 5 Replies to sep122
      • disagree. GM and Ford got loans too...

      • Lehman was insolvent, not facing liquidity issues. It could have gone to the Fed window if it were just a matter of liquidity, but didn't.

        GM and F have been operational issues as well as the pension and medical deals with the unions that cause their stress -- again, not a liquidity issue. They need to sell more cars to get out of their problems.

        So these aren't comparable -- although I agree that politically it will be tough. But the high ticking fee on the loan is likely no where near market for a distresses company and should be reviewed, together with the % the govn't took. The first can be done near term, while the second might take longer.

      • Lehman was insolvent, not facing liquidity issues. It could have gone to the Fed window if it were just a matter of liquidity, but didn't.

        GM and F have been operational issues as well as the pension and medical deals with the unions that cause their stress -- again, not a liquidity issue. They need to sell more cars to get out of their problems.

        So these aren't comparable -- although I agree that politically it will be tough. But the high ticking fee on the loan is likely no where near market for a distresses company and should be reviewed, together with the % the govn't took. The first can be done near term, while the second might take longer.

      • Life is not fair to anyone.
        Especially me.
        If you fear failure don't follow me cause I almost always fail.
        Get away from me cause I am bad luck.
        I am long.
        Some of my friends know to bet opposite of me.
        :) really!
        I'll sit and wait while AIG goes up.
        Dead Reckoning.
        Friends Beware!
        I aim to be able to buy Alaska soon. Lotsa Oil there.
        Also Maui.

    • I love the idea but am sitting on pins and needles hoping it will be accepted.

      The FED has a done deal but with everything that is at stake they may change it to help the economy, Aig employees , Aig 401K stockholders (retirees)

      Right now the FED needs to do all it can to change the U.S. mood to a positive mood out of fear

      accepting the new AIG deal would help.

    • so when does paulson get to read greenburg's proposal?

    • I hope he can make. Surely AIG will go up a lot if he can.

 
AIG
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