AIG Downgraded! Terrible news

[CA renter]

Add my name to the chorus of 50bps cut this week (they’d probably do 75-100bps if they had more ammo).

The ban on financial shorts is probably a given. One has to wonder why, seeing how “successful” the last ban was (note what’s subsequently happened to FRE, FMC, LEH, MER, etc.). But they will still try…

[CA renter]

Hard to believe this was 2005 (seems more recent):

Spitzer Claims ‘Powerful’ Evidence Against AIG; Stresses Today’s Witness Buffett Not Subject of Probes

April 10, 2005

…Spitzer, the New York State Insurance Department and the SEC have been investigating AIG’s accounting practices primarily related to a reinsurance transaction with General Reinsurance and dealings with other offshore reinsurance companies. AIG’s relationship with Starr International Co. is also under scrutiny.

http://www.insurancejournal.com/news/national/2005/04/10/53619.htm

————————-

Whatever one thinks of Spitzer, I firmly believe he was on the right track with many of these financial corporations. I have no doubt that his “indiscretions” were used against him because he was so tenacious in his investigations. He was too close to the fire.

AIG was having “accounting” problems back then, and I thought at the time that they were unwinding some of their derivatives exposure (as Buffett was doing after this investigation).

(correction to above post…FRE, not FMC)

[CA renter]

Hard to believe this was 2005 (seems more recent):

Spitzer Claims ‘Powerful’ Evidence Against AIG; Stresses Today’s Witness Buffett Not Subject of Probes

April 10, 2005

…Spitzer, the New York State Insurance Department and the SEC have been investigating AIG’s accounting practices primarily related to a reinsurance transaction with General Reinsurance and dealings with other offshore reinsurance companies. AIG’s relationship with Starr International Co. is also under scrutiny.

http://www.insurancejournal.com/news/national/2005/04/10/53619.htm

————————-

Whatever one thinks of Spitzer, I firmly believe he was on the right track with many of these financial corporations. I have no doubt that his “indiscretions” were used against him because he was so tenacious in his investigations. He was too close to the fire.

AIG was having “accounting” problems back then, and I thought at the time that they were unwinding some of their derivatives exposure (as Buffett was doing after this investigation).

(correction to above post…FRE, not FMC)

[CA renter]

Hard to believe this was 2005 (seems more recent):

Spitzer Claims ‘Powerful’ Evidence Against AIG; Stresses Today’s Witness Buffett Not Subject of Probes

April 10, 2005

…Spitzer, the New York State Insurance Department and the SEC have been investigating AIG’s accounting practices primarily related to a reinsurance transaction with General Reinsurance and dealings with other offshore reinsurance companies. AIG’s relationship with Starr International Co. is also under scrutiny.

http://www.insurancejournal.com/news/national/2005/04/10/53619.htm

————————-

Whatever one thinks of Spitzer, I firmly believe he was on the right track with many of these financial corporations. I have no doubt that his “indiscretions” were used against him because he was so tenacious in his investigations. He was too close to the fire.

AIG was having “accounting” problems back then, and I thought at the time that they were unwinding some of their derivatives exposure (as Buffett was doing after this investigation).

(correction to above post…FRE, not FMC)

[CA renter]

Hard to believe this was 2005 (seems more recent):

Spitzer Claims ‘Powerful’ Evidence Against AIG; Stresses Today’s Witness Buffett Not Subject of Probes

April 10, 2005

…Spitzer, the New York State Insurance Department and the SEC have been investigating AIG’s accounting practices primarily related to a reinsurance transaction with General Reinsurance and dealings with other offshore reinsurance companies. AIG’s relationship with Starr International Co. is also under scrutiny.

http://www.insurancejournal.com/news/national/2005/04/10/53619.htm

————————-

Whatever one thinks of Spitzer, I firmly believe he was on the right track with many of these financial corporations. I have no doubt that his “indiscretions” were used against him because he was so tenacious in his investigations. He was too close to the fire.

AIG was having “accounting” problems back then, and I thought at the time that they were unwinding some of their derivatives exposure (as Buffett was doing after this investigation).

(correction to above post…FRE, not FMC)

[CA renter]

Hard to believe this was 2005 (seems more recent):

Spitzer Claims ‘Powerful’ Evidence Against AIG; Stresses Today’s Witness Buffett Not Subject of Probes

April 10, 2005

…Spitzer, the New York State Insurance Department and the SEC have been investigating AIG’s accounting practices primarily related to a reinsurance transaction with General Reinsurance and dealings with other offshore reinsurance companies. AIG’s relationship with Starr International Co. is also under scrutiny.

http://www.insurancejournal.com/news/national/2005/04/10/53619.htm

————————-

Whatever one thinks of Spitzer, I firmly believe he was on the right track with many of these financial corporations. I have no doubt that his “indiscretions” were used against him because he was so tenacious in his investigations. He was too close to the fire.

AIG was having “accounting” problems back then, and I thought at the time that they were unwinding some of their derivatives exposure (as Buffett was doing after this investigation).

(correction to above post…FRE, not FMC)

[Carl Veritas]

The Federal Reserve System can create UNLIMITED amounts of new money. It can and have bailed out:

The Mexican Government
LTCM
Fannie Mae
Freddie Mac
Feel free to add to the list

The systems original prime directive is to prevent runs on the big NY banks who created it. It has now evolved into something that transfers all manners of financial risk (and burden of repayment) to the taxpayers for generations to come. Of course all of this occurs with our elected officials and our own blessing.

Just listen to the crowd cheer as the word bail out is mentioned.

[Carl Veritas]

The Federal Reserve System can create UNLIMITED amounts of new money. It can and have bailed out:

The Mexican Government
LTCM
Fannie Mae
Freddie Mac
Feel free to add to the list

The systems original prime directive is to prevent runs on the big NY banks who created it. It has now evolved into something that transfers all manners of financial risk (and burden of repayment) to the taxpayers for generations to come. Of course all of this occurs with our elected officials and our own blessing.

Just listen to the crowd cheer as the word bail out is mentioned.

[Carl Veritas]

The Federal Reserve System can create UNLIMITED amounts of new money. It can and have bailed out:

The Mexican Government
LTCM
Fannie Mae
Freddie Mac
Feel free to add to the list

The systems original prime directive is to prevent runs on the big NY banks who created it. It has now evolved into something that transfers all manners of financial risk (and burden of repayment) to the taxpayers for generations to come. Of course all of this occurs with our elected officials and our own blessing.

Just listen to the crowd cheer as the word bail out is mentioned.

[Carl Veritas]

The Federal Reserve System can create UNLIMITED amounts of new money. It can and have bailed out:

The Mexican Government
LTCM
Fannie Mae
Freddie Mac
Feel free to add to the list

The systems original prime directive is to prevent runs on the big NY banks who created it. It has now evolved into something that transfers all manners of financial risk (and burden of repayment) to the taxpayers for generations to come. Of course all of this occurs with our elected officials and our own blessing.

Just listen to the crowd cheer as the word bail out is mentioned.

[Carl Veritas]

The Federal Reserve System can create UNLIMITED amounts of new money. It can and have bailed out:

The Mexican Government
LTCM
Fannie Mae
Freddie Mac
Feel free to add to the list

The systems original prime directive is to prevent runs on the big NY banks who created it. It has now evolved into something that transfers all manners of financial risk (and burden of repayment) to the taxpayers for generations to come. Of course all of this occurs with our elected officials and our own blessing.

Just listen to the crowd cheer as the word bail out is mentioned.

[davelj]

[quote=kev374]Apparently Goldman and JP Morgan have taken care of the capital requirements so this is all frivolous reporting. AIG is fine. They have $500 billion in assets.[/quote]

The absolute level of a firm’s assets is meaningless. It’s the level of assets RELATIVE to its liabilities. My guess is that the reason the private sector has bailed on AIG is because it suspects that AIG’s liabilities are greater than its assets (on a liquidation basis). I suspect the market is right. Without the Fed, AIG is toast at this point.

[davelj]

[quote=kev374]Apparently Goldman and JP Morgan have taken care of the capital requirements so this is all frivolous reporting. AIG is fine. They have $500 billion in assets.[/quote]

The absolute level of a firm’s assets is meaningless. It’s the level of assets RELATIVE to its liabilities. My guess is that the reason the private sector has bailed on AIG is because it suspects that AIG’s liabilities are greater than its assets (on a liquidation basis). I suspect the market is right. Without the Fed, AIG is toast at this point.

[davelj]

[quote=kev374]Apparently Goldman and JP Morgan have taken care of the capital requirements so this is all frivolous reporting. AIG is fine. They have $500 billion in assets.[/quote]

The absolute level of a firm’s assets is meaningless. It’s the level of assets RELATIVE to its liabilities. My guess is that the reason the private sector has bailed on AIG is because it suspects that AIG’s liabilities are greater than its assets (on a liquidation basis). I suspect the market is right. Without the Fed, AIG is toast at this point.

[davelj]

[quote=kev374]Apparently Goldman and JP Morgan have taken care of the capital requirements so this is all frivolous reporting. AIG is fine. They have $500 billion in assets.[/quote]

The absolute level of a firm’s assets is meaningless. It’s the level of assets RELATIVE to its liabilities. My guess is that the reason the private sector has bailed on AIG is because it suspects that AIG’s liabilities are greater than its assets (on a liquidation basis). I suspect the market is right. Without the Fed, AIG is toast at this point.

[Author]

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