IndyTB

AIG: Paulson's Folly

"If AIG can’t make it on the money the taxpayers have already apparently squandered, then the Treasury should simply exercise its warrants, take control of AIG, and sell off AIG’s solid insurance businesses for what they are worth."

Well, this high on hubris, low on value suggestion gets repeated a lot. For those paying attention - AIG has been on board with selling most of their "solid busineses" since the first loan.

What makes you think that AIG is dragging their feet on asset sales?, or that Fed ownership will somehow magically create financing for would-be purchasers in this credit environment?

Finally - are we *really* still talking about those retreats? It has been covered extensively that they were non-AIG independent agents (you know, the very folks who will keep those "solid businesses" running for AIG and/or the Fed to sell). AIG may have been policitally tone-deaf on timing, but since their original Libor+850 loan was costing $1B/month -- I think they (and not the taxpayers) have more than covered it.