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AIG next ?

Posted: September 15th, 2008, 10:54 pm
by TraderJoe
QuoteAIG - America's largest insurer hits the rocks NEW YORK (Reuters) - Disbelief and anxiety were written on the faces of staff at American International Group Inc as they grappled with the idea that their company, which was once the largest insurer in the world and one of the safest places to work, was struggling for its survival. Workers at the company's lower Manhattan offices, one block from Wall Street, said there were more lunch deliveries than usual, as staff opted to stay inside rather than brave a phalanx of news reporters and cameras camped outside.There was a bigger police presence than normal in the Wall Street area and security guards were double-checking ID's of everyone who came in or out of the AIG building.Some workers at the 89-year-old institution were shocked that the company could find itself in a crisis like the ones at Lehman Brothers Holdings Inc, which just filed for bankruptcy protection after failing to find a rescuer, or Bear Stearns, acquired earlier this year in a "shotgun" merger."I came to this company because it was a big company, and big companies tend to stick around," said one male AIG employee who declined to give his name."There's a massive culture of uncertainty within the building," said a woman who has been in the insurance business for 20 years.Rocky.#

AIG next ?

Posted: September 16th, 2008, 12:17 am
by actuaryalfred

AIG next ?

Posted: September 16th, 2008, 5:29 am
by KackToodles
QuoteOriginally posted by: TraderJoe"There's a massive culture of uncertainty within the building," said a woman who has been in the insurance business for 20 years. Shouldn't their actuaries have anticipated the risk in their models years ago down to the 5th decimal place?!

AIG next ?

Posted: September 16th, 2008, 11:21 am
by quantmeh
AIG or WaMu

AIG next ?

Posted: September 17th, 2008, 2:31 am
by PaperCut
Well they've gotten themselves an $85bn loan from Bernanke.As a taxpayer, I am now required to support AIG.WTF.Enough is enough. NO MORE FED.

AIG next ?

Posted: September 17th, 2008, 2:37 am
by PaperCut
Putin?Chavez?AMATEURS.

AIG next ?

Posted: September 17th, 2008, 3:33 am
by actuaryalfred

AIG next ?

Posted: September 17th, 2008, 6:21 am
by KackToodles
QuoteOriginally posted by: actuaryalfred are these guys what actuaries look like? i've never seen a real life actuary.

AIG next ?

Posted: September 17th, 2008, 9:01 am
by greghm
So nationalizations do not only happen in France

AIG next ?

Posted: September 17th, 2008, 12:30 pm
by ppauper
QuoteOriginally posted by: PaperCutWell they've gotten themselves an $85bn loan from Bernanke.As a taxpayer, I am now required to support AIG.WTF.Enough is enough. NO MORE FED.indeed

AIG next ?

Posted: September 17th, 2008, 12:35 pm
by penguina
QuoteOriginally posted by: PaperCutWell they've gotten themselves an $85bn loan from Bernanke.As a taxpayer, I am now required to support AIG.WTF.Enough is enough. NO MORE FED.yes Abolish the Fed

AIG next ?

Posted: September 17th, 2008, 1:48 pm
by Paul
The difference between Lehman and AIG is that the collapse of the former will not bring down the whole financial system whereas the collapse of the latter might.From this follows the obvious recommendation: Construct derivatives contracts that are so intertwined with other institutions that to buy or sell them will guarantee your survival! Quite a nice task for any quant-lawyer!P

AIG next ?

Posted: September 17th, 2008, 2:35 pm
by list
How do GB and other European and Asia institutions stocks holding LEH, AIG stocks or their derivatives would affect in say correlation meaning in the next future? From the beginning one thought time to time coming up. If there market sell and by derivatives parallel with stock and cash delivery it seems that the prices will be different? The cash settlement call for increasing money supply for example in the bonds-repo form. On the other hand the physical delivery implies more safety change hands and ownership without default events.

AIG next ?

Posted: September 17th, 2008, 3:01 pm
by psholtz
QuoteOriginally posted by: jawabeanAIG or WaMuGoldman isn't doing very well either..

AIG next ?

Posted: September 17th, 2008, 3:11 pm
by psholtz
QuoteOriginally posted by: PaulThe difference between Lehman and AIG is that the collapse of the former will not bring down the whole financial system whereas the collapse of the latter might.From this follows the obvious recommendation: Construct derivatives contracts that are so intertwined with other institutions that to buy or sell them will guarantee your survival! Quite a nice task for any quant-lawyer!PYes, that's what the FT is saying as well. That AIG was not too "big" to fall, but rather too "connected" to fall:QuoteAIG was not too big to fail, but too connected. Bankruptcy would have in effect cancelled the debt insurance that AIG provided, and triggered emergency capital raisings from counterparties around the world. The Fed’s rescue is on punishing terms: AIG must repay the $85bn loan at a storecard-like 8.5 percentage points over Libor, liquidating perfectly fine assets to do so. But resolution – of a sort – has been achieved.Meantime, chalk this up to a failure of regulation. AIG was laid low by mark-to-market losses in its Financial Products division, which wrote insurance on thousands of fixed income securities held by banks. But what AIGFP offered was not straightforward protection, in the sense of covering for potential losses. It was regulatory arbitrage. Banks that entered credit default swaps with AIGFP could assure auditors and regulators that the risk of the underlying asset going bad was protected, and with a triple-A rated counterparty.[...]http://www.ft.com/cms/s/2/83b44ed8-8492 ... fd18c.html