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American International Group, Inc. Message Board

  • mloss616 mloss616 Dec 14, 2010 12:29 PM Flag

    Ok I'll explain what's going on

    Since I am bored, and since nobody at the gov level seems to understand what is going on here it is:
    I was the biggest bear on AIG for the last 2 years simply bc without the gov backstop, AIG was/is insolvent. I never thought the treas/fed would like it come to this and would have shut down the company before the fireworks, but they obviously can't see how the company, and their entire stake is being swept out from under them.
    There is a lawsuit, Murray v. Geithner that began in Dec 2008 challening the legaility of the AIG bailout bc AIG is the biggest provider of Sharia Insurance. Bc of this, and the fact that the gov owns currently 77.9% of the stock through the series C pref, the bailout was/is illegal bc it violates the first ammendment, establishment of reiligion, bc of their Sharia operations. the case has been in summary judgement since June 7. It was in the course of discovery that the plantiffs realized that the Trust that was set up to hold the 77.9% of AIG series C pref was illegal bc the beneficiary of the Trust was no other than the trea dept itself, and in order to be a trust, the beneficiary has to be a person or entity, which is clearly not the case. From what I researched, The fed/treas knew what they were doing was illegal in Sept 2008 by taking control of AIG, but they did it anyways. On march 9th of this year, the fed was subpoened as part of the discovery process, and it is my belief that in this testimony, it was admitted that the trust was illegal. go back to mar 9th, look at the volume and price jump. the closed testimony began at 9 and ended at 12 and you will see the price spike began around 12:30 so somebody was tipping Berkowitz about what was said.
    Ok, so what you are seeing now, is that if the trust is illegal, the Treas does not own 77.9% of the company. If that is the case, they have no right to vote the current recap plan into effect. Therefore, Berk is trying to take control of the stock to overrule the massive dillution that gives the gov 1.655 billion shares. If that happens, the gov/fed/treas is screwed bc the series E and F that they now own is worthless. it pays no div, has no voting rights, and is no traded. it essentially has no value. It was in march of 2009 that our brillaint fed/treas cut a deal with AIG to eliminate the div, making the stake worth nothing, and it is bc of this that we as taxpayers may lose our entire AIG stake for the benefit of the AIG shareholders. if this plan goes through like Berkowitz is betting on, AIG stock may well be worth 200 a share bc there will only be 150 million shares out, giving the company 30 billion value.
    the gov had many reasons and opportunities to avoid this, shut down this comapny but they got duped. bc of their greedy ways, they tried to spin AIG like a success story before the elections in Nov, not realizing the only reason the stock was rising was simply bc of what Berkowitz agenda is. he is only one buying the stock, and he might turn out to be the person who destroyed all faith in the fed/treas if this plan goes through.

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