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NewNewton

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  • Too Big To Fail: The Inside Story Of How Wall Street And Washington Fought To Save The Financial System -- And Themselves [View article]
    The fact that AIG has garnered so much press--negative and positive--over the past 5 years does corroborate the fact that "AIG was too big to fail"! There can be no equivocation of that simple fact.

    When faced with the possibilities of going over a big cliff or a BIGGER cliff, any support will be sought. The federal government stepped up; bailed out AIG; rescued much of the world's financial markets and has been wholly repaid with interest.

    It's not certain how much longer the 'Monday morning quarterbacks" will continue to rhapsodize about "to cliff or to bigger cliff" from their far-too-cushy chairs. For certain is the honest answer that massively drastic action had to be taken--and quickly! In life, most good relationships lead to better outcomes for those within those relationships. Lehman Bros did not appear to have those relationships when needed. Nor did it ever seem "too big to fail".

    Much will continue to be written about what happened to the other players between the Lehman-AIG extremes. That's why we have free speech and a free press. Ain't it great to be free?

    May God continue to always bless those who serve honorably in our military!!!
    Feb 17, 2013. 04:03 AM | Likes Like |Link to Comment
  • AIG sues Maiden Lane II, asking a judge to declare the insurer did not transfer "litigation claims" to the vehicle when it sold it billions in MBS to it during the financial crisis. At issue: Like everybody else, AIG has sued Bank of America (BAC) to recoup losses on bad mortgage paper. The FRBNY - which already got its own settlement from BofA - is of the opinion AIG lost its right to sue when it sold the securities to Maiden Lane. [View news story]
    Johnetoz,

    Thanks for the strong dose of reality and your keen awareness of the worldwide economic cataclysm that would have been caused had AIG had been allowed to default. Not to mention the "emotional state of mind" of many financiers and so-called "pros" around the world.

    The word "uncertainty" is bandied about conveniently today as to why the economy is not performing better. In Fall 2008, who among us was certain as to what an AIG default may have precipitated?

    Again, thanks for your "reality check".
    Jan 13, 2013. 03:46 PM | Likes Like |Link to Comment
  • AIG's (AIG) advertising tagline at the moment may be "Thank you America," but it's board will today consider joining a $25B lawsuit that's being led by former CEO and major investor Maurice Greenberg against the government. The suit argues that the heavy demands of AIG's rescue, such as the government taking a 92% stake and the high interest rate rates levied, deprived shareholders of tens of billions of dollars and violated the Fifth Amendment. [View news story]
    LAWSUIT? Do you mean LAWSUIT? We're talking about a LAWSUIT here? Seriously???

    Sixteen million pages of government documents requested? A fishing expedition of epic proportions!!! Greenberg's fight is with Elliot Spitzer not DC.

    That federal judge in NY surely had it right!!!
    Jan 8, 2013. 08:33 AM | 1 Like Like |Link to Comment
  • The Treasury officially sells its remaining 234M shares of AIG at $32.50 each. Total proceeds to the government will be about $7.6B. With the sale, the combined gain to the Fed and Treasury rises to $22.7B - $5B for Treasury, $17.7B for the Fed. AIG -0.5% premarket to $33.20. (PR[View news story]
    I have never been sure how many of the naysayers to AIG's "bailout" were aware of how much of the world's stability was held in AIG's hands prior to October 2008.

    In any case, much of the post-2008 "anti-AIG" rhetoric has to have been the miserable product of ignorance. Today is a great day! Now, should the US government intervene like this again? I think not. But the answer is not the mindless bashing of "regulations", either!!

    Sheila Bair, where are you when we need you once again??
    Dec 11, 2012. 10:21 AM | Likes Like |Link to Comment
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