AIG to Fed: Paper, Not Cash

The de-leveraging process rolls on. Now AIG wants permission from the government to take paper in lieu of cash as it sells off assets, since cash is, well, not all that available lately. It’s a good idea, in any event.

Given where just about every kind of security, other than Treasuries, is lately trading, paper will likely end up being better than cash in the end. Assuming—and this is a big if—AIG can actually get some deals done. . . .

Comments

[markdauvid:]

AIG lied to us up front. the bailout started at $38 billion and is now around $180 billion. with all that money why should we accept paper instead of cash when they sell an asset. at the very least there should be say 50% cash and 50% cash

Jan 01 03:33 PM

[PS1EAI:]

AIG has not been very kind to taxpayers, but just wait untill Ford, GM, Chrysler and their Houligans, the UAW,and the politicans -get thru with us.
It ain't going to be pretty.

Jan 01 04:10 PM

[fiasco4you:]

I think the paper to cash transition has more to do with the lack of cash from potential buyers. If AIG can sell their assets for more by accepting paper then AIG (potentially) has a better chance at repaying the loan in a timely manor. I am very much in favor of the Paper Plan.

Jan 02 10:11 AM

[BHMTom:]

Amen User 329791 give AIG some breathing room. A deal is still a deal even if its a bartering one. They already have had a tranfusion, now don't suffocate the efforts. The CEO is earning his pay these days. If he can turn this around he will comand many more times what he is getting paid today. God bless these guys.

Jan 02 10:20 PM

[User 330353:]

CASH IF YOU HAVE IT IS NOT BE PUT OUT THERE. I COULD SEE WHERE

PAPER AND CASH COULD BE A GOOD THING. I THINK 90% CASH IS HIGH

Jan 03 10:13 AM

[Kunst:]

Turn off the caps lock.


On Jan 03 10:13 AM User 330353 wrote:

> CASH IF YOU HAVE IT IS NOT BE PUT OUT THERE. I COULD SEE WHERE

>
>
> PAPER AND CASH COULD BE A GOOD THING. I THINK 90% CASH IS HIGH

>
>

Jan 03 07:32 PM

[I weep for ...:]

BHM Tom:
He is making a $1 a year.

Jan 05 04:16 PM