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Pastimes : Investment Chat Board Lawsuits -- Ignore unavailable to you. Want to Upgrade?

To: Kevin Podsiadlik who wrote (10452)	10/8/2008 3:18:46 PM
From: SI Dave	Respond to of 12465

Are we really going to blow up AIG's healthy life insurance division in a fit of political pique? Scarily, I can't definitively answer that 'no'. Exactly. The policy holders of the state-regulated life insurance subsidiaries should not be punished - they are not equity investors in the company or the holding company. Rather the life insurance companies are investment managers for the policy owners' equity and managers for buying the underlying term insurance. The government recognized the operating subsidiaries are well run, profitable, adequately capitalized, and represent quality collateral for the loan. The loan and taking of 80% of the equity was to ensure those subsidiaries are not affected and are sold in an orderly fashion and that they are not compromised by their parent holding company's demise.

To: Kevin Podsiadlik who wrote (10452)	10/11/2008 5:47:31 PM
From: SI Dave	2 Recommendations Respond to of 12465

This will be most appreciated by those who appreciate the arts of sarcasm, cynicism, and irony. Reuters AIG's gallows humor gives bankers a laugh Saturday October 11, 4:52 pm ET WASHINGTON (Reuters) - Insurance giant American International Group (NYSE:AIG - News), on the receiving end of a multi-billion dollar bailout from the Federal Reserve, was trying hard on Saturday to look on the bright side of life. "Credit markets do not function. Why not, because the word credit comes from credibility," AIG Vice Chairman Jacob Frenkel told a group of top global bankers at a lively luncheon where he took a philosophical view of the upheaval in financial markets. "The left side of the balance sheet has nothing right and the right side of the balance sheet has nothing left. But they are equal to each other. So accounting-wise we are fine," he told the Institute of International Finance. AIG, crippled by losses on bad mortgage bets, was bailed out by the Fed with an $85 billion cash lifeline last month. Three days ago, the Fed expanded its assistance in a manner that could bring the total aid up to around $120 billion. "Transparency is 'what you see is what you get' -- and what you don't see gets you," Frenkel said. (Reporting by Alister Bull; Editing by Tim Ahmann)