someone in the biz

Why AIG Needs to Go into Prepackaged Bankruptcy

First of all, it was only recently that AIG revealed (and probably discovered) how much of its exposure was with non-US entities.

Secondly, just because a bank is based in Europe doesn't mean its exposure poses no risk to the US economy. And vice-versa.

I agree, it brings into question aspects of the AIG plan the use of taxpayer funds, but that's another issue. Don't confuse the two.

Why AIG Needs to Go into Prepackaged Bankruptcy

Ummm....actually the plan for AIG has been considered a 'controlled bankruptcy' from the get-go. The concern was that plunging the company straight into Chapter 11 would have created unprecedented systemic risk, worse than the aftermath of Lehman (remember that?).

Employees at the company and those who bother to read up on the details are fully aware that AIG is in the process of being liquidated. This isn't a bail-out to keep the company afloat, it's a rescue plan to prevent further economic meltdown. And of the $173 billion, only about $40 billion has been used.

I've always respected Seeking Alpha, kind of surprised by this rabble-rousing post.

AIG's Whistleblower? (WSJ)

The whistleblower provision is the one aspect of SOX that makes sense. Unfortunately government agencies such as DOL don't have the resources to support these claims.

It doesn't suprise me about AIG, based on my experience working there. Mose people in the atty's position woud have just left in disgust.

AIG Paid Three Times More in Bonuses than Originally Announced

Am I missing something here? The $454m number was revealed during the recent $165m firestorm, so why is this news today?

The stock price won't move on this info because investors don't expect much from AIG. The company's being liquidated anyway.

Blame Citigroup's Woes on the Citi-Travelers Merger

Although the Citi-Travelers merger was the catalyst for Glass-Steagal's repeal, it was by no means the only reason. Repeal of GS was in the works for some time - the law was antiquated and regulators had to jump through hoops to allow banks to engage in services that would enable them to compete with foreign banks and provide more unified risk oversight.

Repeal was stalled by politics - former head of the Senate banking committee, Al D'Amato had too much support from Wall St I banks to push for reform. it wasn't until Phil Gramm took his place that a more pragmatic piece of legislation was enacted.

Gramm-Leach-Riley not only repealed Glass-Steagal, it also enabled more efficient regulatory oversight by removing unnecessary red-tape hurdles (i.e. requiring banks to seek regulatory approval to open a branch, costing hunderds of $'s in legal fees).

The cause of Citi's problems go beyond repeal of GS.