Nov. 3, 2014, 10:35 AM
- Earnings to be reported after the bell may have more implications for the future of AIG's stock price, but former company chief Hank Greenberg's $25B lawsuit against the government charging it with setting illegally harsh terms on the 2008 bailout continues. Widely scorned and brushed off just weeks ago, Greenberg and lawyer David Boies could be set for a victory.
- Boies, reports Bloomberg's Andrew Zajac and Christie Smythe, has won a series of evidentiary rulings since the trial (presided over by Judge Thomas Wheeler without a jury) began on September 29. He's also extracted useful admissions from witnesses, though the gang of Hank Paulson, Ben Bernanke, and Tim Geithner have stuck with their claims that global financial destruction was assured if they didn't get their way.
- Among the evidence introduced by Boies is an email from a FRBNY vice president describing the AIG interest rate as "crazily high." It surely paled in comparison to what shops like Goldman Sachs and Morgan Stanley paid.
Nov. 2, 2014, 5:35 PM
- ACXM, AEIS, AGU, AIG, AMTG, ANV, APL, BDE, BKH, CHGG, CKP, CRK, CUTR, CVD, CXW, CYH, DXPE, EGAN, ELNK, ENH, EOX, EPAM, EQC, FN, FTR, GALE, GRT, GTY, HLF, IART, ININ, KAMN, KBR, LCI, MCEP, MDU, MR, MRO, NBIX, NLS, NOR, NTRI, OGS, OTTR, PKT, PL, PLOW, PQ, QLYS, RBC, REG, RKT, RKUS, RLD, RTEC, SALE, SBRA, SGY, SKH, SNHY, SRC, SSW, SUP, TDW, THC, TXRH, VNO, VNR, WTR, Y
Oct. 23, 2014, 11:03 AM
- Still waging the last war, the regulatory generals of Basel have completed drafting "the first-ever global insurance capital standard." Beginning in 2015, nine companies which have been decreed as systemically important by the FInancial Stability Board (this is different than the U.S.'s SIFI-designation), will report a "basic capital requirements" ratio on a confidential basis.
- The next stage set for the end of 2015 is the definition of "higher loss absorbency" requirements.
- Among the list of nine: AIG, Allianz (OTCQX:AZSEY), MetLife (NYSE:MET), Axa (OTCPK:AXAHF, OTCQX:AXAHY), and Prudential (NYSE:PRU).
Oct. 20, 2014, 2:53 PM
- Analysts Joshua Shanker and Phil Stefano still don't love the company, noting a bloated expense structure, high reliance on positive capital markets trends, and a high-profile trial alleging AIG didn't act in shareholder interest when it accepted a government bailout, but the stock has declined enough of late to make it a bargain even with those negatives.
- "The financial engineering at the company currently makes up for the shortcomings in its operational performance," they say. "We believe that has been true for the last three years, and will continue to be true for the foreseeable future." Should the operational issues get resolved, look out above.
- The duo also remind that AIG isn't the only insurance stock taking a beating of late, and Ameriprise FInancial (AMP +0.6%), MetLife (MET +0.5%), and Prudential (PRU -0.4%) have taken even bigger hits. Exposure to 10-year interest rates is the reason, they expect, pointing to P&C insurers which haven't fallen nearly as far.
- Previously: Deutsche buys the dip in AIG
Oct. 20, 2014, 7:12 AM
Sep. 30, 2014, 3:14 PM
- Insurers (mostly MetLife MET, the others are at least publicly keeping their lips zipped) are not pleased about being subject to capital rules designed for banks.
- The so-called quantitative impact study (QIS) will take input from the insurers as its attempts to figure out the impact on them of the new banking regulations.
- Others of interest include AIG and Prudential (NYSE:PRU).
Sep. 29, 2014, 5:04 AM
- Hank Greenberg's lawsuit against the U.S. government's rescue of AIG (NYSE:AIG) during the 2008 financial crisis is set to begin today.
- The case will center around whether it was legal for the government to pay only $500K for $35B worth in AIG shares, and whether the government was allowed to condition its first $85B loan on an equity stake in the company.
- The six-week trial will also include testimony from the architects of the bailout Ben Bernanke, Henry Paulson and Timothy Geithner.
Sep. 24, 2014, 3:31 PM
- "They took their bitterness out on AIG and wanted to make a big show," says former AIG CEO Bob Benmosche talking about last year's defections of execs to Berkshire Hathaway (BRK.A, BRK.B). "They went over there and, boy, are they really not showing us anything at all."
- Of the exiting rainmakers, Benmosche says they wanted to be left alone to run their own franchises at AIG. "The fact is that they disagreed with a very simple philosophy. We have to be one AIG.”
- After a one-year cool-off period, Berkshire has resumed hiring AIG managers. "The business that they’re picking off is unusually profitable,” says KBW's Meyer Shields. “It’s not hurting Berkshire at all on the underwriting side.”
- Previously: Berkshire makes another hire from AIG
Sep. 23, 2014, 2:49 PM
- Bidding to expand its specialty insurance business, Berkshire Hathaway (BRK.A, BRK.B) hires Brian O'Neill from AIG. It was in April 2013 when Berkshire poached four AIG execs - including P&C head Peter Eastwood - for its new operation.
- Berkshire quickly hired about 15 more from AIG, with "war" breaking out between the two companies. A truce - with Berkshire agreeing to halt the poaching for a year - was agreed to ... that was about one year ago to the day.
Sep. 19, 2014, 12:13 PM
- Jay WIntrob's exit from AIG (AIG -1.9%) could hardly be considered a surprise after he was passed over to lead the company in favor of Peter Hancock. Nevertheless, leadership continuity stands for something, and Wintrob played a big role in the bounce in profits at AIG's Life and Retirement unit.
- The new management structure, says Wells Fargo, suggests the insurer sees itself less as a P&C and Life firm, and more of a commercial segment and consumer segment firm.
- Previously: Peter Hancock puts his stamp on AIG's management team
Sep. 18, 2014, 4:42 PM
- "We are steadfastly working toward the goal of One AIG," says new CEO Peter Hancock. "We have learned that a federated business model exposes us to the weakest link in the chain."
- Exiting AIG after a 25-year career is Jay Wintrob, president and CEO of AIG LIfe & Retirement, and once thought to be the heir apparent to Bob Benmosche. Out after five years with the insurer is Michael Cowan, EVP and Chief Administrative Officer.
- Among those serving on the newly established Operating Committee is just-hired Chief Information Officer Philip Fasano. Hancock has made clear his belief that investments in technology will yield a big payoff for the company.
- Sources: Press Release, Press release
Sep. 17, 2014, 3:16 PM
- Leading markets higher as the reality of higher interest rates gets nearer is the financial sector (XLF +0.9%). Whether its banks, brokerages, or insurers, a higher benchmark rate for some time has been considered a key bullish catalyst. An especially large move is being seen in the online brokerage names who have been forced to forego money market fees for years thanks to ZIRP: E*Trade (ETFC +3%), Schwab(SCHW +3.2%), Ameritrade (AMTD +2%).
- Morgan Stanley (MS +1.8%), Bank of America (BAC +1.2%), JPMorgan (JPM +0.9%)
- U.S. Bancorp (USB +1.1%), Regions Financial (RF +2%), New York Community Bank (NYCB +0.8%), Huntington Bancshares (HBAN +1.3%), KeyCorp (KEY +1.3%)
- MetLife (MET +0.6%), Voya Financial (VOYA +0.7%).
- Chubb(CB +0.4%), AIG (AIG +1.1%), Hartford (HIG +0.8%)
- Financial sector ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, KIE, IAT, SEF, IYG, IAK, FXO, KBWB, FNCL, RKH, QABA, FINU, KRU, KBWR, RWW, KBWP, RYF, KBWI, KRS, FINZ
Sep. 15, 2014, 1:11 PM
- The role is key one for AIG and its new CEO Peter Hancock, who - prior to becoming CEO and now - believes investment in technology will pay large dividends for the insurer.
- Named today to the role is Philip Fasano who joins AIG from Kaiser Permanente, where he held the same position. He'll report directly to Mr. Hancock.
- Source: Press Release
Sep. 8, 2014, 7:30 AM
Aug. 28, 2014, 8:16 AM
- CEO until the end of this month, AIG's Bob Benmosche tells Bloomberg's Betty Liu he moved up his plan to step down after a dire cancer prognosis gave him a year or less to live. The cancer is stable for now, he tells Liu.
- Peter Hancock takes over on September 1.
Aug. 27, 2014, 3:04 AM
- Federal judge Thomas Wheeler has turned down a U.S. bid to dismiss a more than $25B lawsuit filed by former CEO of AIG (NYSE:AIG) Maurice "Hank" Greenberg.
- The government's bailout in 2008 took an initial 79.9% stake in AIG and conducted a reverse stock split, diluting existing shareholders. Starr had been AIG's largest shareholder with a 12% stake.
- Greenberg's Starr International sued in 2011, stating that the $182.3B bailout of AIG was an illegal taking and violated its due process rights.
AIG vs. ETF Alternatives
Other News & PR