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AIG shares slump, says 'everything on the table' ( spread on its CDS: 883, wider than Lehman's)
Market Watch ^ | 09/12/08 | Alistair Barr & John Spence

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 ...


TOPICS: Business/Economy; Front Page News; News/Current Events
KEYWORDS: aig; banks; cds; economy; rating; sale

1 posted on 09/12/2008 11:02:11 PM PDT by TigerLikesRooster
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To: TigerLikesRooster; Uncle Ike; RSmithOpt; jiggyboy; 2banana; Travis McGee; OwenKellogg; 31R1O; ...
Another big one about to blow, ping!
2 posted on 09/12/2008 11:03:00 PM PDT by TigerLikesRooster (kim jong-il, chia head, ppogri, In Grim Reaper we trust)
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To: TigerLikesRooster

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?!


3 posted on 09/12/2008 11:04:46 PM PDT by Southack (Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
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To: TigerLikesRooster

Hmmm, guess who wrote a pile of CDS insurance against FNM debt?


4 posted on 09/12/2008 11:10:23 PM PDT by Attention Surplus Disorder (Congrasites = Congressional parasites.)
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To: Southack
Sounds like you picked a rookie agent.

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....?

5 posted on 09/12/2008 11:10:44 PM PDT by spokeshave (Obama wants to kill babies and raise taxes, Sarah wants to raise babies and kill taxes (also moose))
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To: TigerLikesRooster

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.


6 posted on 09/12/2008 11:48:01 PM PDT by BlackVeil
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To: TigerLikesRooster

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?


7 posted on 09/12/2008 11:56:25 PM PDT by GodGunsGuts
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To: GodGunsGuts

I shorted AIG on the 9th at 17.98 and got out today at 12.54. Not bad for two days work.


8 posted on 09/13/2008 12:03:20 AM PDT by johnnycap
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To: johnnycap

Congratulations! That took some planning and some guts. Job well done!!!


9 posted on 09/13/2008 12:20:39 AM PDT by GodGunsGuts
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To: GodGunsGuts
I also wonder what their “rational” mind is up to.
10 posted on 09/13/2008 12:59:00 AM PDT by TigerLikesRooster (kim jong-il, chia head, ppogri, In Grim Reaper we trust)
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To: GodGunsGuts
'. . . 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 . . .

11 posted on 09/13/2008 1:13:36 AM PDT by ex-Texan (Ecclesiastes 5:10 - 20)
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To: johnnycap

What are you going to do with the money, put it in a bank? ;)


12 posted on 09/13/2008 4:39:57 AM PDT by Freedom4US
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To: TigerLikesRooster

Looks like I will take AIG of the list for a SPIA


13 posted on 09/13/2008 4:46:52 AM PDT by CGASMIA68
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To: ex-Texan
Every time a farmer works all winter on his equipment, preps and plants his fields for a month, that's debt. Every timber man that walks into the woods and cuts a stand for a month, that's debt. Every fishing boat that loads up with fuel, ice, bait, food for two weeks fishing, that's debt. This country was founded on debt. The pre-Colonialist settlements and the Colonies themselves were all, and every person, tool and ship were financed by debt.

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.)

14 posted on 09/13/2008 5:17:25 AM PDT by Leisler
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To: TigerLikesRooster

My list for next to go under: WaMu, AIG, Leh, Mer


15 posted on 09/13/2008 5:41:15 AM PDT by nicola_tesla ("Life is Tough... It's Worse When You're Stupid".... John Wayne)
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To: Leisler

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 :)


16 posted on 09/13/2008 5:43:43 AM PDT by nicola_tesla ("Life is Tough... It's Worse When You're Stupid".... John Wayne)
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To: nicola_tesla
The age-old immortal instinct to search out new returns, and take on risk. Wither it is internally financed, or mutually financed like the Quaker whaling boats, or formally financed by legally invented corporations. The instinct is the same.

Everything new, will invite new abuse. But, that is no reason to not appreciate the benefits and potential.

17 posted on 09/13/2008 5:49:07 AM PDT by Leisler
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To: GodGunsGuts
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?

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?

18 posted on 09/13/2008 5:51:17 AM PDT by Labyrinthos
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To: Labyrinthos
Yup. It's them, debt-mongers. Still in action on another thread:

http://www.freerepublic.com/focus/f-news/2081461/posts

19 posted on 09/13/2008 5:55:43 AM PDT by TigerLikesRooster (kim jong-il, chia head, ppogri, In Grim Reaper we trust)
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To: Leisler

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.


20 posted on 09/13/2008 2:02:05 PM PDT by nicola_tesla ("Life is Tough... It's Worse When You're Stupid".... John Wayne)
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To: ex-Texan

They ain’t making any more land! Real estate is the best investment you can make. The price of real estate has never gone down!


21 posted on 09/13/2008 2:07:17 PM PDT by durasell (!)
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To: Labyrinthos

They ain’t making any more land! Real estate is the best investment you can make. The price of real estate has never gone down!


22 posted on 09/13/2008 2:08:50 PM PDT by durasell (!)
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To: TigerLikesRooster

They ain’t making any more land! Real estate is the best investment you can make. The price of real estate has never gone down!


23 posted on 09/13/2008 2:12:22 PM PDT by durasell (!)
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To: Labyrinthos
Yep, those are the ones. I was just curious as to whether or not the overwhelming evidence contradicting their policy of economic ruin finally made honest FReepers out of them.
24 posted on 09/13/2008 2:27:55 PM PDT by GodGunsGuts
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To: ex-Texan

Given everything that has transpired since then, to call the debt-mongers on FR ignorant would be a compliment.


25 posted on 09/13/2008 2:33:02 PM PDT by GodGunsGuts
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To: nicola_tesla
Answer, yes, being a carpenter, and very much an uber basic person, and in New England being well aware of the necessity of shelter for much of the year for life itself.

It's hard to pin down the prices on the components that total out house prices. Building materials and methods the last 20 years have become very productive by twice, at least.

On the other hand, modest and useful size houses and lots have been made illegal due to snob, environmental and self dealing zoning. Featherbedding on electrical, plumbing, septic, storm windows, architects and lawyers have all, IMHO, doubled the cost of housing.

Half of the mortgage problem was from outside the US. That is where can you, if you are a foreigner, park tens of billions, instantly, with a good chance of getting repaid and at a good rate. In a way, we were dumbed imported cash. Maybe nanny Congress should of made investing in the US illegal and saved ourselves from ourselves.

26 posted on 09/13/2008 4:59:22 PM PDT by Leisler
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To: Leisler
"..were dumbed dumPED imported cash...
27 posted on 09/13/2008 5:01:27 PM PDT by Leisler
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To: Leisler

No, the mortgage problem was a direct result of liar or Option ARM loans made to people who have no chance of paying them back, good OR bad credit score notwithstanding.

This began with unsustainable housing prices due to easy credit, and it will end with housing bottoming, my guess being that will be in 3-4 years when the majority of mortgage underwriting will return to the historically feasible norm of 20% down, 36% DTI backend ratio, no down payment assistance.


28 posted on 09/14/2008 10:18:17 AM PDT by nicola_tesla ("Life is Tough... It's Worse When You're Stupid".... John Wayne)
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To: nicola_tesla
At every credit level, and loan option, there are defaults.
Historically, most people pay their loans, and it is a profitable and popular business.

If credit card companies make money sending high school kids cards, backed up only by their signature, I see know reason that home mortgages backed up by only signature can not work at the proper rate.

Anyways, just as there are new car sign and drive deals, so too will there be homes. Only the government needs to get out of the way. If one adult wants to give money to another adult with a signature, fine by me. We wouldn't have any of this if it wasn't for government tying us all together.

PS.
If we had a good free market in housing, housing would lose value every year, just like all cars. How do you think conservatives would like that? They wouldn't. They would run to the government to intervene to prop up house prices.

29 posted on 09/14/2008 11:01:24 AM PDT by Leisler
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