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American International Group, Inc. Message Board

  • lary5449 lary5449 Dec 18, 2009 8:52 AM Flag

    AIG will not pay back TARP

    Seeking Alpha:
    "Treasury outlines TARP exit. A senior Treasury official said the TARP program has been successful but that Treasury remains a reluctant shareholder in GM and finance firms such as AIG (AIG) and Citigroup (C). Treasury expects AIG to exit its international life-insurance businesses by early 2011, and that it will sell some $26.5B of Citigroup common stock within six to 12 months, a similar timeframe for selling its auto investments. Treasury estimates its AIG and auto investments will result in $60B in losses."

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    • Is it fair to say longs have benefited from adding only the positive and ignoring all that is negative , helped by a CEO that provides evasive answers and no transparency. How do you justify a stock gaining value strictly on the back of shorts. This is not about price discovery it is a scam . The Fed has a responsibility to make sure there is a measure of transparency, this has yet to happen.

      In the Gober fraud case that took base in California it quotes how fraudulent methods past and present are used to inflate AIG stock, yet AIG won on a technicality.

      Can the stock survive the next quarter given the Basel II transition takes effect and all toxic stuff come back on the balance sheet if not undone ?

    • welldarnaintthatashame welldarnaintthatashame Dec 27, 2009 12:03 PM Flag

      Seriously, don't people do any research anymore? You're basing your investment strategy off of one quote you pull out of an article? Look man, research the Maiden Lane SPVs... will be Maiden Lane II and III... then you will know where they are talking about taking loses. Note that AIG is not responsible for those assets sold to the Treasury under TARP in those SPVs... I think I need to sit down and write out a decent explaination for everyone so that they can stop posting BS and acting intelligent... because as Voltaire said... 'a witty saying proves nothing'

      • 2 Replies to welldarnaintthatashame
      • Hmmm, interesting. Didn't the treasuary recieve 40 billion in preferred stock as compensation? and if they did recieve prefered issues in AIG, couldnt they sell that interest to recover the aid they gave to AIG? why is it they are already writing off the investment as a 30 billion dollar loss? if AIG has all this hidden value that people talk about, the 40 billion in preferreds that the gov owns should appreciate in value to the point the treasuary is not at a loss, shouldnt it?
        AIG the comapny as it stands now is nothing more than a black hole that has the ability to suck the life out of FRBNY if they must draw on the credit line again because all those" colleterized assets" the FRBNY was talking about (ILFC, AGFP, United Guarnty) are almost worthless. ILFC and AGFP now rated junk will destroy any ability they had to raise funds though the private markets in order to sustain their business model. they only way they can continue is for AIG to fund them through their access to the FRBNY credit line. Doesn't anyone find it strange that the ILFC bids were due Dec 3, and a decision was to be made 7-10 days after that? it is now Dec 27, and nothing. The FRBNY probably has an escape clause that is triggered once the collaterized assets of AIG become non-investment grade vehicles (junk), and should pull the credit line asap, before they waste more money, recieve public scrutiny, and cause bad press. AIG is toast, and will enter a specialized bankruptcy just like CIT did.

      • "A witty saying proves nothing" ranks right on up there with "It's so good it needs no slogan".

    • Didn't C pay back TARP?

    • Seeking Alpha:
      "Treasury outlines TARP exit. A senior Treasury official said the TARP program has been successful but that Treasury remains a reluctant shareholder in GM and finance firms such as AIG (AIG) and Citigroup (C). Treasury expects AIG to exit its international life-insurance businesses by early 2011, and that it will sell some $26.5B of Citigroup common stock within six to 12 months, a similar timeframe for selling its auto investments. Treasury estimates its AIG and auto investments will result in $60B in losses."

 
AIG
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