Posted on 09/16/2008 4:22:50 PM PDT by rabscuttle385
The Federal Reserve is considering an $85 billion rescue for embattled American International Group that could leave the government in control of the firm, according to people familiar with the matter, though the structure of a deal remains unclear.
(Excerpt) Read more at online.wsj.com ...
Ouch!
Check the donation list. Who’s been getting what?
Let it go TU, dammit.
No bailout!
And they let Lehman go under. Not everyone who worked at Lehman was a fat cat. There are plenty of honest working everyday Joes who lost everything. If Lehman had to be the example then AIG should go down as well.
It seems to me that with all of this bailing out going on that the Federal Government has way too much of our money...
Is this the same AIG that donated to John Kerry and Kerry helped with workmens Comp Insurance some time back? It had something to do with the 14+Billion Big Dig in Boston.
Sounds like AIG shareholders and bond holders will get nothing and that the USG will get AIG’s businesses as collateral, until they can be sold off.
The Fed is considering some sort of financial support for AIG, the Wall Street Journal reported, citing a person familiar with the situation.
However, by 6.50 p.m. ET on Tuesday, no plans had been announced.
.....
AIG didn't mention its big derivatives business, the main source of its problems. AIG shares failed to recover after the statement.
Senate Dodd, Christopher J $104,300
Senate Obama, Barack $45,111
Senate McCain, John $41,200
Senate Clinton, Hillary $36,831
Senate Baucus, Max $24,750
Senate Biden, Joseph R Jr $19,975
Presidential Romney, Mitt $19,950
Senate Sununu, John E $15,950
House Larson, John B $14,500
Presidential Giuliani, Rudolph W $13,200
Senate Durbin, Dick $11,000
House Kanjorski, Paul E $11,000
House Perlmutter, Edwin G $10,500
House Rangel, Charles B $9,000
Presidential Edwards, John $7,850
House Neal, Richard E $6,500
Senate Rockefeller, Jay $6,500
Senate Reed, Jack $6,000
House Maffei, Dan $5,000
House Bean, Melissa $4,750
See all recipients
The old Wall Street saying was “It’s not over until there’s blood in the streets” - - - but now Washington’s aversion to blood (figuratively speaking, of course) is leaving us with an infected wound that just keeps spreading. At some point there needs to be a cleansing flow. The market can’t properly reward success if we refuse to let it punish failure.
Well....no fan of bailouts, no fan of seeing huge businesses fail, to me if the taxpayers could realize a profit then I would not be completely opposed to such a bailout.
AIG should be a viable company, there is little reason why it cannot be, the Insurance Industry is a money making machine in most times.
Even Warren Buffet ran into hard times this year.
To me, the bottom line is what is best for the taxpayer.
Who's next?
Ronald Reagan:
Government is not the solution to our problems. Government is the problem.
Btw, one of the reasons the stocks didn't take a drop today was that the Fed passed around $70 Bil this morning in loans.
It must be nice to be able to get such a nice loan from the Gov't.
Senate Obama, Barack $45,111
Senate McCain, John $41,200
Well, well, well...what have we here?
No no no no no no no no no no no no no no no no.
NO.
Rush is insured with AIG!
He assured us today he did not think this would happen.
The company, American International Group, has enlisted dozens of obscure subsidiaries to distribute contributions, all drawn from a common A.I.G. bank account and often through sequentially numbered checks, totaling hundreds of thousands of dollars.
A.I.G. defends the contributions, which seem to comply with the law as interpreted by the State Board of Elections.
The donations in recent years include totals of $50,000 to the gubernatorial campaign of Attorney General Eliot Spitzer; $335,000 to those of Gov. George E. Pataki; $34,300 to the campaign of Lt. Gov. Mary O. Donohue; and $25,000 to the 2006 campaign of Comptroller Alan G. Hevesi.
Often, the subsidiaries’ identities give no hint of their affiliation with A.I.G., making it difficult to determine the extent of A.I.G.’s giving. For example, 10 companies — with names like Green Hills Corporation and Yosemite Insurance — gave $5,000 checks to Mr. Spitzer’s campaign on a single day in December 2003. The only clues that the checks came from a common source were that they all had sequential numbers and bore an address of 70 Pine Street in Manhattan, A.I.G.’s headquarters.
If a company fails it is because of a failed business plan or poor investment of their capital. Other companies will buy out any of their profitable assets and pick up all their customers, it is how the economy works.
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