Former AIG CEO says loan could sink the insurer
#1
99 TL, 06 E350
Thread Starter
Former AIG CEO says loan could sink the insurer
These people...I say gov't take back that bailout quickly. And these con artist should be in court by now.
http://www.reportonbusiness.com/serv...l_gam_mostview
http://www.reportonbusiness.com/serv...l_gam_mostview
NEW YORK Former American International Group Inc. chief executive, Maurice Greenberg, says the United States government's $85-billion (U.S.) loan to the huge insurance company will drive it out of business unless its terms are changed.
The role of government should not be to force a company out of business, but rather to help it to stay in business, especially a company that has been the pride of its industry, Mr. Greenberg wrote in a letter sent late Tuesday to the insurer's current CEO, Edward Liddy.
In the letter, Mr. Greenberg said AIG will not be able to pay off the loan from proceeds tied to asset sales and potential earnings. That will eventually lead to the liquidation of AIG, he said in the letter.
The role of government should not be to force a company out of business, but rather to help it to stay in business, especially a company that has been the pride of its industry, Mr. Greenberg wrote in a letter sent late Tuesday to the insurer's current CEO, Edward Liddy.
In the letter, Mr. Greenberg said AIG will not be able to pay off the loan from proceeds tied to asset sales and potential earnings. That will eventually lead to the liquidation of AIG, he said in the letter.
#5
Administrator Alumnus
#7
Safety Car
AIG's most important role in the marketplace is as what I call an "internal reinsurer." Through their many subsidiaries, AIG can afford to insure many risky lines because it can subsidize potential losses with other branches of its business.
Smaller insurance companies will not risk entering into certain markets because of the risk. If they do enter, they do it with the backing of a large reinsurer.
So you're still tying it all into a handfull of companies.
As much as you dislike big business, there are some situations where you need huge capital to make it possible. There isn't going to be mom & pop insurance companies.
Smaller insurance companies will not risk entering into certain markets because of the risk. If they do enter, they do it with the backing of a large reinsurer.
So you're still tying it all into a handfull of companies.
As much as you dislike big business, there are some situations where you need huge capital to make it possible. There isn't going to be mom & pop insurance companies.
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#8
I disagree with unanimity
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I wasn't saying I dislike big business--just a big business that brings down the economy with it's collapse. Let them get big, but there should be some kind of safeguard (I don't mean bailing them out after it's too late) against economic turmoil with their collapse.
#9
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#10
Big White Chocolate
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These fucking guys just don't get it.
Charlotte, N.C. (AP) --
A handful of top executives from American International Group Inc. spent thousands of dollars during a recent English hunting trip, even as the New York-based insurer asked for an additional $37.8 billion loan from the Federal Reserve.
The news comes as New York Attorney General Andrew Cuomo on Wednesday told the insurance giant to do away with golden parachutes for executives, golf outings and parties while taking government money to stay afloat.
Cuomo said he has the power under state business law to review and possibly rescind any inappropriate AIG spending as long as the Federal Reserve is propping up the huge insurer with almost $123 billion in loans announced since Sept. 16.
"This was an annual event for customers of the AIG property casualty insurance companies in the U.K. and Europe, and planned months before the Federal Reserve Bank of New York's loan to AIG," company spokesman Peter Tulupman said Wednesday morning.
In a prepared statement later in the day, the company said, "We will continue to take all measures necessary to ensure that these activities cease immediately. AIG's priority is to continue focusing on actions necessary to repay the Federal Reserve loan and emerge as a vital, ongoing business."
AIG officials declined to say which AIG executives attended the trip, which reports have said racked up an $86,000 tab. News of the hunting trip surfaced just days after AIG received an additional $37.8 billion loan from the Federal Reserve, on top of a previous $85 billion emergency loan granted last month.
The company said last week it would stop "all non-essential conferences, meetings and activities that do not clearly maximize value and service given the current conditions."
Last month, and just days after the U.S. government stepped in to save AIG with a $85 billion taxpayer-funded loan, the company picked up a $440,000 tab for a week-long retreat at a posh California resort for top-performing insurance agents.
Lawmakers investigating AIG's meltdown said they were enraged that executives of AIG's main U.S. life insurance subsidiary spent a lavish amount on the retreat, complete with spa treatments, banquets and golf outings. Last week, White House Press Secretary Dana Perino called the event "despicable."
At that time, AIG issued a statement saying that the "business event" was planned months before the Sept. 16 bailout and that it was held for top-producing independent life insurance agents, not AIG employees. Of the 100 attendees, only 10 worked for the AIG unit hosting the event, it said.
The insurer said Chief Executive Edward Liddy sent a letter to Treasury Secretary Henry Paulson "clarifying the circumstances" of the event. In the letter, Liddy assured Paulson that AIG is "reevaluating the costs of all aspects of our operations in light of the new circumstances in which we are all operating."
The insurer then said it canceled a future California retreat that was to be held later this month.
Regarding the recent hunting trip, "We regret that this event was not canceled," Tulupman said Wednesday.
Shares of AIG fell 37 cents, or 13.2 percent, to $2.43 in trading Wednesday.
A handful of top executives from American International Group Inc. spent thousands of dollars during a recent English hunting trip, even as the New York-based insurer asked for an additional $37.8 billion loan from the Federal Reserve.
The news comes as New York Attorney General Andrew Cuomo on Wednesday told the insurance giant to do away with golden parachutes for executives, golf outings and parties while taking government money to stay afloat.
Cuomo said he has the power under state business law to review and possibly rescind any inappropriate AIG spending as long as the Federal Reserve is propping up the huge insurer with almost $123 billion in loans announced since Sept. 16.
"This was an annual event for customers of the AIG property casualty insurance companies in the U.K. and Europe, and planned months before the Federal Reserve Bank of New York's loan to AIG," company spokesman Peter Tulupman said Wednesday morning.
In a prepared statement later in the day, the company said, "We will continue to take all measures necessary to ensure that these activities cease immediately. AIG's priority is to continue focusing on actions necessary to repay the Federal Reserve loan and emerge as a vital, ongoing business."
AIG officials declined to say which AIG executives attended the trip, which reports have said racked up an $86,000 tab. News of the hunting trip surfaced just days after AIG received an additional $37.8 billion loan from the Federal Reserve, on top of a previous $85 billion emergency loan granted last month.
The company said last week it would stop "all non-essential conferences, meetings and activities that do not clearly maximize value and service given the current conditions."
Last month, and just days after the U.S. government stepped in to save AIG with a $85 billion taxpayer-funded loan, the company picked up a $440,000 tab for a week-long retreat at a posh California resort for top-performing insurance agents.
Lawmakers investigating AIG's meltdown said they were enraged that executives of AIG's main U.S. life insurance subsidiary spent a lavish amount on the retreat, complete with spa treatments, banquets and golf outings. Last week, White House Press Secretary Dana Perino called the event "despicable."
At that time, AIG issued a statement saying that the "business event" was planned months before the Sept. 16 bailout and that it was held for top-producing independent life insurance agents, not AIG employees. Of the 100 attendees, only 10 worked for the AIG unit hosting the event, it said.
The insurer said Chief Executive Edward Liddy sent a letter to Treasury Secretary Henry Paulson "clarifying the circumstances" of the event. In the letter, Liddy assured Paulson that AIG is "reevaluating the costs of all aspects of our operations in light of the new circumstances in which we are all operating."
The insurer then said it canceled a future California retreat that was to be held later this month.
Regarding the recent hunting trip, "We regret that this event was not canceled," Tulupman said Wednesday.
Shares of AIG fell 37 cents, or 13.2 percent, to $2.43 in trading Wednesday.
#13
She said: it's GINORMOUS!
this is why they to prosecute and line these bitches up, then shoot them in the fucking face! i bet they'll have a concept of money when the fed start taking back their accumulated past bonuses and salary from all these a-holes at AIG, Lehman, Bears and set a precedent for the future greedy bitches.
i walk by that AIG building everyday at Waters and see those smug fuckers and feel like kicking them right in the friggin nuts.
i walk by that AIG building everyday at Waters and see those smug fuckers and feel like kicking them right in the friggin nuts.
#14
ABP-KBP-CBP & ME
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It's more complicated than that. There wasn't enough time to sell of all or most of their assets. AIG is more than just an insurance company they have their hands in Mortgages, Aerospace leasing, Real Estate, Telecommunications etc. They have too many subsidaries to name here and the U.S. government saw what was coming if they let them collapse. That being said I disagree with Greenberg he is shortsighted and that's one of the reason's he's a former CEO.
#15
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It's more complicated than that. There wasn't enough time to sell of all or most of their assets. AIG is more than just an insurance company they have their hands in Mortgages, Aerospace leasing, Real Estate, Telecommunications etc. They have too many subsidaries to name here and the U.S. government saw what was coming if they let them collapse. That being said I disagree with Greenberg he is shortsighted and that's one of the reason's he's a former CEO.
The only reason Treasury cut the deal with AIG was to have an orderly break-up and liquidation of AIG's many assets. Greenberg either was quoted out of context or doesn't understand the deal.
#16
With all the Subprime lending and the banks loosing it to bad debits due to shortsales and foreclosures...looks like where looking at another 1 1/2 years before things start rolling around...the banks want to hold onto these shortsales as long as possible so the PIM will kick in and they force them into foreclosures(CountryWide)is in big favor of this one and Washington Mutal/Wachovia going under the way they did the FDIC just raised the insurance on accounts to $250,000 till the end of 2009 to ease the public...I have my 6 & 7 licenses and co-own an international investment company...I'm taking this opportunity to purchase more properties for a return in 10years(rent them out for now). People want what they don't have...they tend to live above there means to keep up with everyone else...I'm against this bail-out plan going to raise our taxes and make things difficult for all of us. WE ARE IN A RESSESSION!!
#17
how handsome I am
With all the Subprime lending and the banks losing it [losing what, their virginity?] to bad debts due to shortsales and foreclosures...looks like where looking at another 1 1/2 years before things start rolling around...[? like a dog trick?] the banks want to hold onto these shortsales as long as possible so the PIM will kick in and they force them into foreclosures(CountryWide)is in big favor of this one and Washington Mutal/Wachovia going under the way they did the FDIC just raised the insurance on accounts to $250,000 till the end of 2009 to ease the public...I have my 6 & 7 licenses and co-own an international investment company...I'm taking this opportunity to purchase more properties for a return in 10years(rent them out for now). People want what they don't have...they tend to live beyond their means to keep up with everyone else...I'm against this bail-out plan raising our taxes and making things difficult for all of us. WE ARE IN A RECESSION!!
#18
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With all the Subprime lending and the banks loosing it to bad debits due to shortsales and foreclosures...looks like where looking at another 1 1/2 years before things start rolling around...the banks want to hold onto these shortsales as long as possible so the PIM will kick in and they force them into foreclosures(CountryWide)is in big favor of this one and Washington Mutal/Wachovia going under the way they did the FDIC just raised the insurance on accounts to $250,000 till the end of 2009 to ease the public...I have my 6 & 7 licenses and co-own an international investment company...I'm taking this opportunity to purchase more properties for a return in 10years(rent them out for now). People want what they don't have...they tend to live above there means to keep up with everyone else...I'm against this bail-out plan going to raise our taxes and make things difficult for all of us. WE ARE IN A RESSESSION!!
btw the bailout plan won't raise taxes:
http://money.cnn.com/2008/10/15/news...ymag/index.htm
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