1st bailout worked so well AIG wants more money - GoFuckYourself.com

IllTestYourGirls · 02-23-2009, 02:03 PM

http://www.msnbc.msn.com/id/29353489/

Quote:

AIG seeking more U.S. funding, sources say
CNBC reports company expected to report $60 billion loss, largest ever
msnbc.com news services
updated 3:18 p.m. ET, Mon., Feb. 23, 2009

AIG is in discussions with the government about securing additional funds so it can keep operating after next Monday when it will report the largest loss in U.S. corporate history, sources told CNBC Monday.

CNBC's David Faber said sources close to the company told him the loss will be near $60 billion due to write-downs on a variety of assets including commercial real estate.

He said that massive loss is likely to spur downgrades in the firm's insurance and credit ratings that will force AIG to raise collateral it does not have. Faber added that if AIG's book value falls below a certain level, it will trigger default in some of its debt instruments, according to people familiar with the situation.

The Federal Reserve and the Treasury Department have already provided AIG assistance of over $150 billion. AIG officials have not offered comment, Faber said.

CNBC said talks are focused on how the company can swap some of the debt held by the government for equity in AIG. Faber said the problem is that the government's ownership stake cannot exceed its current 79.9 percent, leaving officials to try and find a creative way to transfer value to the U.S. in exchange for AIG reducing its debt so that it can then borrow more from the government to meet its collateral calls.

AIG has borrowed roughly $40 billion from a $60 billion credit facility provided it by the Federal Reserve Bank of New York. If it can find a way to pay that down by swapping equity, it hopes to take it back up to a level that will allow it to meet its collateral and capital calls, Faber said.

Officials at the Federal Reserve Bank of New York have not returned calls.

AIG's board is scheduled to meet this Sunday night in hopes of hammering out an agreement with the government, CNBC reported.

Daddy Big Nuts · 02-23-2009, 02:06 PM

Shocking. What next? Wait. Let me guess. Banks need more money. The automakers need more money. I really hope that America wakes the fuck up and votes out every member of congress that voted for this shit.

IllTestYourGirls · 02-23-2009, 02:09 PM

Quote:

Originally Posted by Daddy Big Nuts

Shocking. What next? Wait. Let me guess. Banks need more money. The automakers need more money. I really hope that America wakes the fuck up and votes out every member of congress that voted for this shit.

My senator got voted out because he voted for the first bailout. The person who replaced him voted for the spending bill

$5 submissions · 02-23-2009, 02:35 PM

The Dow acts as the ultimate "Truth-O-Meter" to all the "big plans" and "expectant announcements" floating around. So far, it's not looking good.

Another thing: I just watched the scariest shit ever--Goldman Sachs' Hong Kong/Asia head noting that while Japan's crisis was due to business expenditures which account for 12% of their GDP, the US' crisis is at the consumer end which accounts, at its height, for 72% of GDP. There's no "Japanese Lost Decade" comparison according to him. The US crisis is DRAMATICALLY going to be worse. All those stimulus bills didn't do dick in Japan.

D Ghost · 02-23-2009, 02:38 PM

lmao, oh no.....

Daddy Big Nuts · 02-23-2009, 03:24 PM

Quote:

Originally Posted by IllTestYourGirls

My senator got voted out because he voted for the first bailout. The person who replaced him voted for the spending bill

democrat?

nation-x · 02-23-2009, 03:27 PM

http://www.huffingtonpost.com/2009/0..._n_169084.html

IllTestYourGirls · 02-23-2009, 03:30 PM

Quote:

Originally Posted by $5 submissions

The Dow acts as the ultimate "Truth-O-Meter" to all the "big plans" and "expectant announcements" floating around. So far, it's not looking good.

Another thing: I just watched the scariest shit ever--Goldman Sachs' Hong Kong/Asia head noting that while Japan's crisis was due to business expenditures which account for 12% of their GDP, the US' crisis is at the consumer end which accounts, at its height, for 72% of GDP. There's no "Japanese Lost Decade" comparison according to him. The US crisis is DRAMATICALLY going to be worse. All those stimulus bills didn't do dick in Japan.

It is not going to be pretty.

We are just watching congress pay their buddies before the ship goes down.

Quote:

Originally Posted by Daddy Big Nuts

democrat?

He was replaced by a democrat

_Richard_ · 02-23-2009, 03:53 PM

Quote:

Originally Posted by IllTestYourGirls

It is not going to be pretty.

We are just watching congress pay their buddies before the ship goes down.

He was replaced by a democrat

i don't get this rhetoric.. why are these stimulus bills all dems doing? i thought bush put out the first two?

IllTestYourGirls · 02-23-2009, 04:14 PM

Quote:

Originally Posted by SBR Richard

i don't get this rhetoric.. why are these stimulus bills all dems doing? i thought bush put out the first two?

There is no rhetoric and I am not saying the dems are at fault. I was replying to him saying the Senator that got voted out because he voted for the first bank bailout was a Rep and was replaced by a Dem who then voted for the spending bill. Pretty much saying we are getting fucked by both sides.

Darkland · 02-23-2009, 04:21 PM

Where is Tyler Durden when you need him? He's got the solution...

_Richard_ · 02-23-2009, 04:22 PM

Quote:

Originally Posted by IllTestYourGirls

There is no rhetoric and I am not saying the dems are at fault. I was replying to him saying the Senator that got voted out because he voted for the first bank bailout was a Rep and was replaced by a Dem who then voted for the spending bill. Pretty much saying we are getting fucked by both sides.

sorry dude, i was talking generally..

just seems like Obama is the new Stalin because he signed a stimulus bill

Socks · 02-23-2009, 04:25 PM

Quote:

Originally Posted by Darkland

Where is Tyler Durden when you need him? He's got the solution...

Woefully trapped inside a DVD cover.

IllTestYourGirls · 02-23-2009, 06:11 PM

Quote:

Originally Posted by SBR Richard

sorry dude, i was talking generally..

No prob

pocketkangaroo · 02-23-2009, 06:15 PM

As much as this completely sucks, it has to be done. AIG can't be allowed to fail. They should have been regulated more heavily and not allowed to leverage themselves out like this. They should not have been allowed to get that big without regulation. It's horrible to pump money into this failing business, but I don't see any other solution at the moment.

Rochard · 02-23-2009, 06:26 PM

If AIG was to go out of business in the morning it would have zero effect on me.

We just gave the banks billions and what happened? Nothing. I understand change doesn't happen in a day, but we gave them money to grease the wheels and get loans moving. Yet they aren't doing it.

pocketkangaroo · 02-23-2009, 06:30 PM

Quote:

Originally Posted by Rochard

If AIG was to go out of business in the morning it would have zero effect on me.

We just gave the banks billions and what happened? Nothing. I understand change doesn't happen in a day, but we gave them money to grease the wheels and get loans moving. Yet they aren't doing it.

I wouldn't say that. Many of the banks and financial companies in this country would go out of business. Others would be scared shitless as to whether they are exposed to the risk. Credit lines would be slashed, banks would stop lending. Perhaps that doesn't effect you, but it would effect the majority of your customers who would lose their credit limits on their CC or just their job.

Barefootsies · 02-23-2009, 06:32 PM

Quote:

Originally Posted by SBR Richard

i don't get this rhetoric.. why are these stimulus bills all dems doing? i thought bush put out the first two?

They did.

Quote:

1st BUSH bailout worked so well AIG wants more money

ztik · 02-23-2009, 06:32 PM

The business obviously does not work. When our business's don't work, we close up shop. They should too.

Doctor Dre · 02-23-2009, 09:44 PM

Quote:

Originally Posted by Daddy Big Nuts

Shocking. What next? Wait. Let me guess. Banks need more money. The automakers need more money. I really hope that America wakes the fuck up and votes out every member of congress that voted for this shit.

If they wanted to play this game they should have never let a single bank fail... The fact that it happened is what is brigning the rest of the banks down with the CDs.

Everything is inter-linked, as fucked as it sounds, they need to nationalise every bank that's in the hole right now.

Doctor Dre · 02-23-2009, 09:47 PM

Quote:

Originally Posted by $5 submissions

The Dow acts as the ultimate "Truth-O-Meter" to all the "big plans" and "expectant announcements" floating around. So far, it's not looking good.

Another thing: I just watched the scariest shit ever--Goldman Sachs' Hong Kong/Asia head noting that while Japan's crisis was due to business expenditures which account for 12% of their GDP, the US' crisis is at the consumer end which accounts, at its height, for 72% of GDP. There's no "Japanese Lost Decade" comparison according to him. The US crisis is DRAMATICALLY going to be worse. All those stimulus bills didn't do dick in Japan.

For stimulus bills in japan, they took the money from one place and put it in the other... it wasn't really a stimulus since they cut to make it work.

But 700B isn't going to do shit... if we hear the rumors, the FED already launed a lot more to big corps.

Either way the people are goign to get a lot poorer very soon. The fact that the european and asian economies are going so bad is the only reason why the USD is still strong.

Doctor Dre · 02-23-2009, 09:52 PM

Quote:

Originally Posted by Rochard

If AIG was to go out of business in the morning it would have zero effect on me.

We just gave the banks billions and what happened? Nothing. I understand change doesn't happen in a day, but we gave them money to grease the wheels and get loans moving. Yet they aren't doing it.

If AIG goes out of business today it's the colapse of the financial system as we know it...
There are multiple multiple times the GDP of the entire planet in credit default swaps... that means every bank and compagny that have them would almost instantly go bankrupt. That probably includes the bank where your money is.

Doctor Dre · 02-23-2009, 10:00 PM

If you don't understand what credit default swaps I'l explain. It's a lot more complicated then that but in a few words :
I's insurance agaisn't another compagny (banks and insurance compagnies in this case) colapsing).

They never thought the banks would have colapsed so pretty much every real estate transaction is insured by a 3rd party. If a bank fails, that 3rd party has to pay up.

Iron Fist · 02-23-2009, 11:24 PM

Maybe it's not too far fetched...

"The First Bank of the United States of America"

AlienQ - BANNED FOR LIFE · 02-23-2009, 11:36 PM

AIG is failing for a reason. Let it fail.

Penthouse Tony · 02-23-2009, 11:48 PM

Quote:

Originally Posted by Doctor Dre

If AIG goes out of business today it's the colapse of the financial system as we know it...
There are multiple multiple times the GDP of the entire planet in credit default swaps... that means every bank and compagny that have them would almost instantly go bankrupt. That probably includes the bank where your money is.

Yup AIG can't fail. The entire financial system is way too interconnected. In fact AIG was fine until Lehman Brothers was allowed to fail. Once they failed AIG had a mess on their hands from the credit default swaps on Lehman Brothers mortgages. If AIG goes down suddenly this situation gets way uglier for all the banks.

02-23-2009, 02:06 PM	#2
Daddy Big Nuts Confirmed User Industry Role: Join Date: Mar 2002 Location: Tampa Posts: 1,080	Shocking. What next? Wait. Let me guess. Banks need more money. The automakers need more money. I really hope that America wakes the fuck up and votes out every member of congress that voted for this shit. __________________ DreamGirlsCash - Exclusive 100% 2257 compliant Party Girl Content WildPartyGirls.com, ClubFlashers.com, GirlFun.com, MiamiBeachParty.com, DreamGirlsMembers.com [email protected] ICQ 448262927

02-23-2009, 02:35 PM	#4
$5 submissions I help you SUCCEED Industry Role: Join Date: Nov 2003 Location: The Pearl of the Orient Seas Posts: 32,195	The Dow acts as the ultimate "Truth-O-Meter" to all the "big plans" and "expectant announcements" floating around. So far, it's not looking good. Another thing: I just watched the scariest shit ever--Goldman Sachs' Hong Kong/Asia head noting that while Japan's crisis was due to business expenditures which account for 12% of their GDP, the US' crisis is at the consumer end which accounts, at its height, for 72% of GDP. There's no "Japanese Lost Decade" comparison according to him. The US crisis is DRAMATICALLY going to be worse. All those stimulus bills didn't do dick in Japan. __________________ Need a NON-ADULT income stream? We build your YOUTUBE CHANNEL for only $20 per video! For Hire: $3/hour or $400 per month Marketing Specialist Virtual Assistants

02-23-2009, 04:21 PM	#11
Darkland Confirmed User Join Date: May 2002 Posts: 1,488	Where is Tyler Durden when you need him? He's got the solution... __________________ "The towers are gone now, reduced to bloody rubble, along with all hopes for Peace in Our Time, in the United States or any other country. Make no mistake about it: We are At War now -- with somebody -- and we will stay At War with that mysterious Enemy for the rest of our lives." H.S.T. 09/12/01

02-23-2009, 06:26 PM	#16
Rochard Jägermeister Test Pilot Industry Role: Join Date: Dec 2001 Location: NORCAL Posts: 73,335	If AIG was to go out of business in the morning it would have zero effect on me. We just gave the banks billions and what happened? Nothing. I understand change doesn't happen in a day, but we gave them money to grease the wheels and get loans moving. Yet they aren't doing it. __________________ “The choice is no longer between right or left. The choice is between normal and crazy.” - Sarah Huckabee Sanders YNOT MAIL \| THE BEST ADULT MAILING SOLUTION

02-23-2009, 06:32 PM	#19
ztik Confirmed User Industry Role: Join Date: Aug 2001 Location: Nomad Posts: 5,196	The business obviously does not work. When our business's don't work, we close up shop. They should too. __________________ .

02-23-2009, 02:38 PM	#5
D Ghost null Industry Role: Join Date: May 2006 Posts: 9,820	lmao, oh no.....

02-23-2009, 03:27 PM	#7
nation-x Confirmed User Industry Role: Join Date: Mar 2004 Location: Rock Hill, SC Posts: 5,370	http://www.huffingtonpost.com/2009/0..._n_169084.html

02-23-2009, 06:15 PM	#15
pocketkangaroo Confirmed User Join Date: Jan 2005 Location: Chicago, IL Posts: 8,452	As much as this completely sucks, it has to be done. AIG can't be allowed to fail. They should have been regulated more heavily and not allowed to leverage themselves out like this. They should not have been allowed to get that big without regulation. It's horrible to pump money into this failing business, but I don't see any other solution at the moment.

02-23-2009, 11:24 PM	#24
Iron Fist Too lazy to set a custom title Join Date: Dec 2006 Posts: 23,400	Maybe it's not too far fetched... "The First Bank of the United States of America" __________________ i like waffles

02-23-2009, 11:36 PM	#25
AlienQ - BANNED FOR LIFE best designer on GFY Join Date: Mar 2003 Location: IALIEN.COM - High Definition Video and Photographic Productions -ICQ 78943384 Posts: 30,307	AIG is failing for a reason. Let it fail. __________________ NAKED HOSTING FTW!11 I'm On The INSANE PLAN $9.95/mo! \| The Alien Blog Adult News Worth Reading Updated Daily \| Content For Sale! 641 PICS 216 MINUTES OF VIDEO $350.00 \|ICQ: 78943384 \|