Post by unlawflcombatnt on Sept 21, 2009 15:15:23 GMT -6
It looks like at least 1 Congressman has decided that the government has been too mean to poor AIG on its bailout terms. He thinks we should make it a little easier for AIG to pay back its loan obligations, even though much of AIG's bailout came in the form of outright gifts from taxpayers (i.e., the Fed's "cash-for-nothing" program--the purchase of worthless securities with taxpayers' money).
from Reuters:
AIG: new bailout plan considered
Mon Sep 21, 2009
"Insurer American International Group Inc's once-desperate financial state has started to stabilize, a government agency said on Monday, as an influential lawmaker said he would look at easing the terms of the insurer's federal bailout once more....
AIG, the recipient of billions of dollars in government support, started to show signs of stabilizing in mid-2009, as financial markets improved, congressional investigators said in a report on the status of the government's assistance to the company.
The insurer was rescued by the government in September 2008, after losing bets that it made on the U.S. housing market threatened to drive the firm into bankruptcy.
Rep. Edolphus Towns, a Democrat who chairs the Government Reform Committee, told staff to take a look at a proposal from former AIG Chief Executive Officer Hank Greenberg that could make it easier for the insurer to repay federal obligations....
The proposal would cut the government stake in AIG from the current 80% and trim interest rates on AIG's government loan. It also would extend the term of the loan, giving the company more time to repay, the spokeswoman said.
However, it is still unclear whether U.S. taxpayers would ever be repaid fully...according to the report compiled by the Government Accountability Office (GAO), the investigative arm of Congress.
The GAO said the U.S. government remains exposed to risks, including credit risk and investment risk, which could result in the Federal Reserve and Treasury not being repaid in full. (The GAO's full report is available here)...
AIG's total bailout package, already rewritten 3 times since September 2008, has swelled to as much as $182.5 billion. The rescue includes the government's purchase of toxic assets to relieve the insurer of billions of dollars in liabilities, and a funding facility that the insurer has yet to draw in full.
AIG currently owes about $80 billion in federal loans.
To repay its debts, AIG has tried to sell off assets; but so far it has raised net proceeds of only $4 billion, hampered by tight credit markets and buyers looking for bargains.
The possibility of a 4th revision to AIG's bailout appeared to spark the rally in AIG's stock on Monday, said Jon Najarian, co-founder of optionmaster.com.
He said the bullish sentiment appeared to be driven by retail investors and day traders, with triple the normal volume taking bets that the shares could trade as high as $65 by next month.
Najarian said there were no signs that big institutions were involved in the surge in activity in the shares on Monday...."
www.reuters.com/article/hotStocksNews/idUSTRE58K3OL20090921
from Reuters:
AIG: new bailout plan considered
Mon Sep 21, 2009
"Insurer American International Group Inc's once-desperate financial state has started to stabilize, a government agency said on Monday, as an influential lawmaker said he would look at easing the terms of the insurer's federal bailout once more....
AIG, the recipient of billions of dollars in government support, started to show signs of stabilizing in mid-2009, as financial markets improved, congressional investigators said in a report on the status of the government's assistance to the company.
The insurer was rescued by the government in September 2008, after losing bets that it made on the U.S. housing market threatened to drive the firm into bankruptcy.
Rep. Edolphus Towns, a Democrat who chairs the Government Reform Committee, told staff to take a look at a proposal from former AIG Chief Executive Officer Hank Greenberg that could make it easier for the insurer to repay federal obligations....
The proposal would cut the government stake in AIG from the current 80% and trim interest rates on AIG's government loan. It also would extend the term of the loan, giving the company more time to repay, the spokeswoman said.
However, it is still unclear whether U.S. taxpayers would ever be repaid fully...according to the report compiled by the Government Accountability Office (GAO), the investigative arm of Congress.
The GAO said the U.S. government remains exposed to risks, including credit risk and investment risk, which could result in the Federal Reserve and Treasury not being repaid in full. (The GAO's full report is available here)...
AIG's total bailout package, already rewritten 3 times since September 2008, has swelled to as much as $182.5 billion. The rescue includes the government's purchase of toxic assets to relieve the insurer of billions of dollars in liabilities, and a funding facility that the insurer has yet to draw in full.
AIG currently owes about $80 billion in federal loans.
To repay its debts, AIG has tried to sell off assets; but so far it has raised net proceeds of only $4 billion, hampered by tight credit markets and buyers looking for bargains.
The possibility of a 4th revision to AIG's bailout appeared to spark the rally in AIG's stock on Monday, said Jon Najarian, co-founder of optionmaster.com.
He said the bullish sentiment appeared to be driven by retail investors and day traders, with triple the normal volume taking bets that the shares could trade as high as $65 by next month.
Najarian said there were no signs that big institutions were involved in the surge in activity in the shares on Monday...."
www.reuters.com/article/hotStocksNews/idUSTRE58K3OL20090921