AIG (American International Group)

Alchemist · #1 3rd March 2009, 10:34 AM

AIG reported a $62 billion loss in Q4 of 2008 and a total loss of $99 billion loss for 2008.

The US government has already thrown $150 billion to the company and now has assured another $30 billion if needed.

This makes AIG the biggest single beneficiary of the US bailout package.

The interesting part is that these losses aren't from the company's core insurance business. This insurance business still remains profitable.

So what's wrong with the company?

Quote:

To be sure, most of A.I.G. operated the way it always had, like a normal, regulated insurance company. (Its insurance divisions remain profitable today.) But one division, its “financial practices” unit in London, was filled with go-go financial wizards who devised new and clever ways of taking advantage of Wall Street’s insatiable appetite for mortgage-backed securities. Unlike many of the Wall Street investment banks, A.I.G. didn’t specialize in pooling subprime mortgages into securities. Instead, it sold credit-default swaps.

Source: read this article.....

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vasa1 · #2 18th March 2009, 11:42 PM

Quote:

For the American public, AIG now stands for "arrogance, incompetence and greed," said Rep. Paul Hodes, D-N.H.

Source: AIG chief says he asked execs to return bonuses.

Wednesday March 18, 2:02 pm ET

vasa1 · #3 19th March 2009, 07:38 AM

Quote:

Asked by Rep. Barney Frank, D-Mass., whether he would turn over the names of individuals who received the bonuses, as well as the amounts, Liddy said he would do so only if assured the information not be made public.

When Frank said he might seek a subpoena, Liddy said he was concerned about the safety of the employees and their families, and read aloud from a death threat received by one of them.

Source

Here the recipients would promptly demand, and get, Z+ security! And then stand for election!

man4urheart · #4 19th March 2009, 08:39 AM

Quote:

When Frank said he might seek a subpoena, Liddy said he was concerned about the safety of the employees and their families, and read aloud from a death threat received by one of them.

This is what I like about America!

Everybody gotta gun!

This is way to go......India thode hee hai..."Sab chalta hai"