AIG lose R 600 bn in 12 weeks

[PCW]

That's Manuals budget

The US Treasury has given AIG $ 30 bn , but surely that's pointless. When is this going to bottom out !!

 

[DJ...]

The longer they keep bailing them out, the longer it will take to bottom out. AIG were one of the largest insurers of CBO deals, and also exposed themselves massively through their asset management to CDS' and CBOs. I used to work closely with their fixed income department in New York and London and know the kind of exposure they had so this comes as no surprise whatsoever. They are one of the biggest reasons for the global financial crisis and following many of their previous dodgy dealings (numerous fraud, corruption and SEC irregularities), I don't think they deserve a cent, let alone $30bn...

 

[DJ...]

The issue here is that bailing them out now does very little, because these CDO deals are issued in tranches and only mature in the coming years. The duration of these bonds means that they will feel these losses for years to come still, so bailing them out now doesn't help much at all, unless they try to stimulate the ABS market again, which is just absurd because that is what caused this mess in the first place. Derivatives trading and the insurance of those deals is what caused the mess and AIG were the largest investor in ABS deals at one point, and then still insured these deals through CDS' that they sold too - talk about gearing your exposure...

 

[Morgoth]

the USA cannot sit with more unemployment, I personally wouldn't bail them out, the same goes for banks it their irresponsibility but I understand why it is being done.

 

[Alan]

See what happens when you sponsor Man Utd