Five large American banks, including JPMorgan Chase and Goldman Sachs, have more than $80 billion of exposure to Italy, Spain, Portugal, Ireland and Greece, the most economically stressed nations in the euro currency zone, according to a New York Times analysis of the banks’ financial disclosures.
But these banks have made extensive use of a type of financial insurance, the credit-default swap, to help them offset any losses that might occur if defaults swamped the five troubled nations.
Using these swaps, along with other measures, the five banks have cut their theoretical exposure to the troubled countries by $30 billion, to $50 billion. The analysis also shows that
Citigroup has the greatest percentage of its exposure potentially protected, at 47 percent, while Bank of America has bought the least protection, at 12 percent.
Citigroup said it had $20.2 billion of exposure to the five stressed peripheral countries at the end of last year. The bank said it had $9.6 billion of “credit protection” on those countries, and had set aside $4.2 billion of collateral that would also offset its total exposure.
Hey Aig should have sold AIG like I did day before earnings.
I figure low twenties is the max pain.
I'd rather play C for a short term bounce at these levels than play a short position imo. I rarely ever short stocks I am a short term (weeks/months) trader. I was looking to get into C at around $25-24 for a short term trade but decided to get in yesterday feeling a short term bounce (C/market)could be in the very near future. If not then I will have to hold C a little longer, but I am comfortable holding C at this level and should be able to make a little money on this position/trade imo.
I just bought 2k shares @ $26.81 today for a short term play/pop to around $30.00-$32.00 and will be out hope I get it. :)
I been watching C and I couldn't resist today thinking C is pretty low could here and could be near a bottom for a bounce. Hoping to get a bounce short near term and I will be out of C. I think its it near a bottom imo but know it could go down to the low twenties if this market doesn't have a bounce and continues to go straight down in the next couple weeks but hoping for a bounce.
BTW played C at $26 @2k (in Dec) sold at $31.00, and C ran up to $38.00 that time. :(
But will be out at $31.00 -$ 32.00 in this market today if and when I get it.
Good luck guys decided and sold my positon ( in @ 30.57)in after hours tonight gave it a lot of thought before I sold. If earnings/report is good and it goes up GOOD for you guys ( I mean it) and not for me. :(
If earnings/report turns out good (which I hope it is) I'll wait for another good entry point that looks good to me to get back in.
Looks like to me he is expecting real good earnings from AIG to be getting in right before earnings. He will soon find out if this was a good move he made :)
Jon I couldn't post a link it was on my live news feed (SC/DJN) today (around 7:35am) for AIG when I saw it while checking news on AIG and some other stocks I am trading. So just thought I would post it.
"Actually I am concerned about stock dilution as the govt sells its 70% stake back into the market, will this not drag down the price of the common stock? Anybody with comments that make sense would be appreciated! Thanks"
AIG will be buying back billions of dollars worth of shares from the government which will lower the outstanding shares which will help earnings, book value, and PPS will rise.
Government will be selling a % of shares outside the open market.
Government will be selling shares ( in tranches) in the open market cautiously not to hurt the price more than 5-10% during its tranche sales.
If all goes well(& asset sales)and earnings this year I see a conservative $45.00 - $50.00 PPS by 12-2012 imo. Any speed bumps on up coming earnings and AIG could trade down in the mid -low twenties again imo.
Do your DD on AIG to decide whether you want to get in on AIG