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American International Group, Inc. Message Board

  • greenmoon212 greenmoon212 Aug 20, 2010 11:06 AM Flag

    aig sold its bad stuff on aug 11th

    to fortress private equity / 71 billion of debt off the balance sheet..then the slimy executives at fortress will do a tender offer on the aig bonds and pay out 50 to 70 cents on the dollar..essentially wiping out 30billion and 2.5 billion in interest payments (aig would have done this themselves but even the government thought this move was slimy) and figured they should sell them off to a group of more slimballs (fortress) because they are private equity and don't have to disclose. what does this all just wiped its hands clean on alot of crappy debt they issued in the hey day

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    • So while mr. lotto and I (and others) were trying to get to the bottom of how the sale to Fortress would affect AIG, you were content to simply say it was a great development and ignore any issues raised.

      and then you call your blind pumperism "discussion" and reject our actual rational attempts to get to the truth of the matter.

      you would fail any junior college logic class.

      I will continue to point out your idiocy.

    • you're as stubborn as they come.and missleading.i find it easier to not argue with or discuss anything with people like you.unless you ask anything directly i will not talk/reply with are just a diletant.stick with the clown business my advice to you since you dont have a position in any stock anyways.

    • well, you almost got me on that one, oh strange one.

      from the article to which I was referring: quoting the journalist (Barr), "When the sale to Fortress closes, AIG can take this debt off its balance sheet."

      Next line, from Cathy S., "This is a very leveraged entity and AIG will be able to deconsolidate it, so that's positive," Seifert said.

      So it was the writer who said the debt was gone. Seifert said it would be "deconsolidated", and you will note I asked if anyone knew if "deconsolidation" necessarily meant the debt was gone, or whether it meant the need to report it was no longer required under GAAP. (I do know that the entity being sold is treated as an equity owned by the parent for reporting purposes and the profit or loss must be reported.)

      Probably too many concepts for you to absorb at once, akkie.

      Here's another beauty from your dear Cathy S.: "When I look at it vis-a-vis other insurance companies, there is not a compelling value here," said Catherine Seifert, an analyst at Standard & Poor's Equity Research.

    • moron,time and time again you prove the same which is you know nothing.cathy siefert is not a journalist she's s&p insurance analyst,she covers aig and all/most i'm sure you'll come up with something different of what is beeing said.

    • of course you're right (lol!) akalbaek...the JOURNALIST said AIG was out from under that debt, so it must be so...hahahaha.

      I don't know anywhere in business that a guarantor of a debt can get out of their obligation without the creditor agreeing to let them off the hook.

      but the journalist said it could in this instance. eh?

      for those GAAP experts out there, could it be that once the subsidiary is sold, its debt no longer must be shown on the consolidated balance sheet of the parent company (AIG) even though the guarantee is still in place?

    • what you both were suggesting that there was somekind of debt still guaranteed by aig,and your and you have no clue what you talking about read again,it says clearly that it will come of aig's ballance sheet.and if it comes to charging you will be in debt above your empty head,as you wrong all the time when it comes to economy and aig in particular,when you not make this personal issue then maybe you will see things clearly,good weekend mr.BOZO,dont scare the kids.

    • thank you for proving my point: you had no idea what mr lottopol and I were discussing.....which was how much of the debt of the recently sold subsidiary AIG may still be guaranteeing.

      he thought it might be the whole 17 billion. another poster says the price action on those bonds indicates the AIG guarantee, if there was one, is now gone. I'm agnostic on the issue.

      I'm gonna hafta start charging you for translating these posts for you. do you have PayPal?

    • still comprehending you clown!evry post you ever have here on this board sugest that your name is B.O.Z.O.

    • so you back to comprehend line,ok you fak comprehend this!The company used to package up a lot of the loans it made into securities and sell them to investors. However, it was shut out of the securitization market during the financial crisis, undermining its business model. This year, American General has managed to securitize some of its loans, which has helped results and increased the potential value of the business.

      Still, like some of its customers, American General has a lot of debt. The company holds about $20 billion of assets, but has roughly $18 billion in liabilities, including $17 billion of debt.

      When the sale to Fortress closes, AIG can take this debt off its balance sheet.

      "This is a very leveraged entity and AIG will be able to deconsolidate it, so that's positive," Seifert said.

      American General has also suffered as the weak economic recovery keeps loan defaults high. Selling the business will reduce AIG's exposure to this, she added.

    • corrected 17 billion

      • 1 Reply to greenmoon212
      • It looks like American General is now subsidiary of AIG and American General has two Subsidiaries:Variable Annuity Life Insurance Co.; American General Finance, Inc.

        Fortress is buying American General Finance, Inc. so AIG will only be guaranteeing the rest of the American General debt including the debentures beging XFP

        American General had a banner year in 2000. Operating earnings rose 13 percent, and AG's assets under management rose about six percent to $114 billion. The company performed strongly in all its divisions. The company soon found itself, as it did ten years earlier, the object of a complex takeover. In early 2001, AG received a bid from the large British insurer Prudential PLC. AG's board voted to accept the offer in March, but the deal was soon quashed when AG received a bigger offer from another company, American International Group. AIG, based in New York, had a large overseas insurance business, though it was far less known in its home country. AIG listed its stock in London, Paris, Tokyo, and on the Swiss Exchange, as well as in New York, and it operated in 130 countries worldwide in a wide variety of financial services fields. Among its many business lines, the company leased airplanes, invested in real estate, handled retirement plans, and engaged in consumer finance. AG agreed to pay $600 million to Prudential to get out of its previous agreement and cemented the merger with AIG in August 2001. AG folded many of its operations into its new parent's. The alliance of the two companies gave AIG a much bigger slice of the North American market, while AG hoped to benefit from AIG's expertise abroad.

        Principal Divisions

        Life Insurance; Retirement Services; Consumer Finance.

        Principal Subsidiaries

        Variable Annuity Life Insurance Co.; American General Finance, Inc.

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