[quote=jficquette][quote=davelj]As much as I think the Establishment will try to move heaven and earth to make sure AIG doesn’t fail, I just don’t see how it all comes together without help from the visible hand of the government.
The problem is simple: Due Diligence. There’s no way in hell that anyone, without a backstop from the government, will provide AIG with capital without spending serious time on due diligence given the complexity of its business. I just can’t see it happening. This process would take at LEAST a month involving well over 100 professionals under normal circumstances. I realize that these aren’t normal circumstances, but how can a company put up capital in good faith without knowing what they’re signing up for? Without the government I just don’t see how AIG is saved.[/quote]
I agree however they did do the Bear Sterns deal over a 3 day weekend.
John[/quote]
True, but Jamie Dimon has admitted publicly since the Bear Stearns deal that he wouldn’t have done the deal if offered another chance to turn it down. I think proper due diligence would have revealed the folly of the transaction. Now folks know how ugly the innards of these companies are. Now they either want time to perform proper due diligence or a government backstop – which are completely rational desires. On a related topic, I believe that Ken Lewis (sorry, make that Ken Lewis’s shareholders) will rue the day he agreed to acquire Merrill on such short notice.
