Skip to comments.AIG shares slump, says 'everything on the table' ( spread on its CDS: 883, wider than Lehman's)
Posted on 09/12/2008 11:02:09 PM PDT by TigerLikesRooster
AIG shares slump, says 'everything on the table'
Insurer may sell Transatlantic stake, other businesses to raise capital
By Alistair Barr & John Spence, MarketWatch
Last update: 5:42 p.m. EDT Sept. 12, 2008
SAN FRANCISCO (MarketWatch) -- Insurance giant American International Group, beset by a record stock slump and a possible cut from ratings agency Standard & Poor's, said Friday it was reviewing its businesses and that "everything was on the table," suggesting it might sell assets to raise capital and avoid a crippling downgrade.
The company had been preparing for a major reorganization announcement on Sept. 25, but on Friday the Wall Street Journal reported on its Web site that the company may hold a conference call for analysts on Monday during which it could announce asset sales.
AIG shares slumped a record 31% Friday on concern the world's largest insurer may be downgraded by ratings agencies, triggering billions of dollars in new capital needs.
Standard & Poor's put AIG's ratings on CreditWatch with negative implications, suggesting the agency may downgrade the insurer in the future.
"Additional market value losses will place some strain on the company's resources," Standard & Poor's credit analyst Rodney Clark said in a statement. "AIG's potential access to the capital market may be more restricted in the short term."
AIG stock lost 31% to close at $12.14. More than 300 million shares traded, another record, according to FactSet Research. The shares lost another 5.6% to $11.46 in after-hours action.
(Excerpt) Read more at marketwatch.com ...
Anecdotally, this week I tried to buy a life insurance policy from AIG.
The salesman kept telling me prices and terms, and I kept saying “Sign me up. That’s what I want to buy.”
He couldn’t take “yes” for an answer. He wanted to talk and talk, but wouldn’t take my money.
I was never able to buy a policy from AIG.
‘Sup wit dat?!
Hmmm, guess who wrote a pile of CDS insurance against FNM debt?
The correct line is:
"Excellent decision...lets complete the paperwork...use this pen....sign here and here.....and a check for $xxx...thank you Mr Client and who else do you know amongst your relatives, friends, co-workers and buddies that would be interested in my services....?
The fact that there is such instability AFTER they have put in so much public money should cause a rethink in strategies. But of course it won’t.
So has any of this sunk in with the debt-mongering charlatans that used to frequent these threads, or are they still busy championing policies that will lead to our financial ruin?
I shorted AIG on the 9th at 17.98 and got out today at 12.54. Not bad for two days work.
Congratulations! That took some planning and some guts. Job well done!!!
'. . . So has any of this sunk in with the debt-mongering charlatans that used to frequent these threads, or are they still busy championing policies that will lead to our financial ruin? . . .'
No, they are still out there throwing rocks. Just check my posts. They still attack me but understand cannot prevail. The war is basically over. Now only one or two of the worst charlatans still attack me. But mostly indirectly. They are like the last crabs left on a beach, scurrying sideways while the sun goes down . . .
What are you going to do with the money, put it in a bank? ;)
Looks like I will take AIG of the list for a SPIA
Since the first caveman that pushed out into the Forrest, with a small bag of food and hope for better hunting grounds, with no assurance of success, the world has run on debt.
(I'm surprised there isn't a thread blaming rural electrification for American decay.)
My list for next to go under: WaMu, AIG, Leh, Mer
Huh ? Funny definition of debt...
Debt is a negative quantity of wealth that originates in a transfer of wealth in which the owner does not immediately receive compensation in wealth. It is goods or services owed to a creditor.
It’s not debt if you owe it to yourself. That’s called a capital investment :)
Everything new, will invite new abuse. But, that is no reason to not appreciate the benefits and potential.
Are these the same charlatans who used to attack Freepers Hydroshock, Ex-Texan, myself, and others for merely suggesting that the real estate bubble was about to pop and that the impact would eventually spread from the real esate markets through the banking, insurance, and financial sectors?
Do you think that house prices in excess of traditional lending standards (generally 3x a person’s yearly income is considered a repayable amount for a mortgage), engendering debt in excess of a person’s capacity to repay, represents “benefits” and “potential” ? I beg to disagree. Since when did a house become “an investment”. It’s just a place to live, and it’s a depreciating asset. It doesn’t make you any money.
And, to be blunt, I have no problem with people seeking “new returns and taking on risk”, but if they want to do it I don’t think they should keep the gains while others, who were not party to the gains, get to pay the losses, do you ? I’m not in favor of welfare, to either rich or poor.