Govt will give 90 million loan but gets load of warrants. Common stock will be severely depressed but AIG will continue to operate. Loan rate would go down the faster AIG sells asset. Otherwise they are filing BK tomorrow Winners: Us & AIG Losers: Those who hold stock in AIG,
Does the Fed stepping in to save AIG mean good news for markets or bad news for markets? I can think of several pro’s and con’s of each.
90 Billion, yes?
Shit I shd have held on to my short position overnight.
not moving in after hours
daj224 Wrote: ------------------------------------------------------- > not moving in after hours Dude it is 30% down in after-hours
kcin Wrote: ------------------------------------------------------- > Does the Fed stepping in to save AIG mean good > news for markets or bad news for markets? > > I can think of several pro’s and con’s of each. So list them. What do you think? I’m going with bad. In fact, I don’t even understand it. Warrants? So, uh, Mr Paulson, the US Gov’t doesn’t typically trade equity derivatives…
Just short every company from now on. Its game over folks.
strangedays Wrote: ------------------------------------------------------- > daj224 Wrote: > -------------------------------------------------- > ----- > > not moving in after hours > > > Dude it is 30% down in after-hours i know that, i meant after this more recent news flow… you guys watching JEF? i see AIG down 62%
I am worried about HBOS in the UK…may be the next Northenrock?
hmmm will this be enough and what will the rating agencies have to say this time?? will the rating agencies be able to maintain their independence even is there is a bridge loan in place backed by the Fed??? interesting policitcs
hmmmm so the Fed has sorted the liquidity problem to meet the down grade? and it still has not resolved its capital issue that was what bought about the downggrade. so the aig issue is not resolved yet. IMO.
http://www.nytimes.com/2008/09/17/business/17insure.html?ref=business \ Fed to Give A.I.G. $85 Billion Loan and Take 80% Stake
anyone care to guess what this would imply for the debt of the AIG subsidiaries such as ilease and american general? do these get sold off to raise capital? i wouldnt assume the debt of these firms goes to 0.
AIG deal with Fed for $85B loan, 80% stake is ‘done,’ CNBC reports Fed to give $85B loan to AIG and take 80% stake-NY Times The New York Times reports the Federal Reserve agreed to take a nearly 80% stake in American International Group (AIG), in exchange for an $85 billion loan, according to people with knowledge of the negotiations.
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missing the details here guys…according to the WSJ: “The primary option being hammered out involved the Fed providing AIG with a short-term “bridge” loan of $85 billion, according to people familiar with the situation. In exchange, the government would receive warrants in AIG representing the right to buy its stock, under certain conditions.” ‘under certain conditions’ they said that more detail may be forthcoming, but as far as I can see it seems that it is a bridge loan and the condition is successful asset sales, the warrants would come in IF they cant sell assets…i think that would make sense…
That’s interesting… Hmmm… So the warrants provide the mechanism for the conservatorship that they can’t get through normal laws.
anyone know the capital structure of AIG? how much cushion did the unsecured creditors have - was it at least 100B? - once you set aside the secured creditors’ assets. is it the treasury or the fed coming in? where in seniority will they come in? anyone tracking the news closely that knows this stuff?
good for market - bad for aig common