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Aaaand.... It's Gone: Tiny Tim Plans Shelving Of AIG Stock Offering After Stock Plunge Continues
Remember the other most hyped up re-IPO ever, AIG (after that other Marxist-inspired, union-lubricating, channel-stuffing debacle GM)? The same company that nearly brought down the system, that insured more disaster prone garbage than even Berkshire Hathaway, which is 92% owned by the government because it wouldn't look cool if the government fully nationalized everyone after Lehman was left to die, and was subsequently eagerly attempting to buy back its toxic filth at half off prices from Goldman's Bill Dudley who just so happens works at 33 Liberty now? Well, you can kiss that goodbye: the FT reports that "AIG and the US Treasury are discussing whether to shelve or scale back plans for a large public offering this month because of the lacklustre performance of the insurer’s shares in recent weeks, people close to the situation said." You can also kiss the Treasury's boasts of a break even on its AIG "investment" - this despite 2 years of endless market levitation, forced short squeeze, margin hikes, several wars, $4 trillion in monetary and fiscal stimuli, and most certainly, the kitchen sink. "People involved said the most likely outcome of the deliberations would be for the offering to proceed at a smaller size and closer to the Treasury’s break-even point. This would allow the restructured company to provide a longer record to the market before a larger sale later this year. Shares in AIG have fallen more than 30 per cent since January 20, hitting $29.62 on Tuesday and jeopardising taxpayers’ profits on the share sale. Treasury’s break-even level is $28.73 a share and officials have been reluctant to approve an offering below that price." This likely also means that any follow on equity capital raises by AIG will be relegated to CDO issuance and other "silly paper" that will be bought only with other people's money.
From the FT:
Washington is attempting a fine balance between extricating itself from its biggest bail-out as quickly as possible and avoiding realising a loss. AIG, led by chief executive Robert Benmosche, is keen to re-establish itself as a normal listed company but is also wary of pushing down further the value of its stock with a low-priced offering.
At Tuesday’s closing prices, the Treasury’s 92 per cent stake in AIG was worth $49bn, a slim premium over its $47.5bn cash investment. The government is planning two large stake sales this year but it is likely to retain some stock into 2012.
AIG has also said it would sell equity when the Treasury begins its share sales in an attempt to raise fresh capital and rebuild its shareholder base after most shareholders were wiped out by the company’s near collapse.
That said, every single time the government is forced to divest a stake the market somehow miraculously vaunts higher as if on nothing but Fed manipulation: kinda like what has happened this week (although the number of trade tickets for ES purchases via Citadel is running low at the FRBNY or so we hear). So anyone out there hoping to see a dip, forget about it: State Street and BoNY have their marching orders to sequester any existing shorts and make sure that the short interest in the NYSE drops to a fresh all time low, even as the Chairsatan pumps a cool $10 billion a day in the market.... because of the wealth effect of course.
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At least the kitchen sink may have some value...
Obligatory
http://www.youtube.com/watch?v=4TlPo0yCSa4
That's nice, needs a sound edit.
A sink has value because it can be reused for a purpose...
TimTim is starting to understand that nobody gives a shit what some dumb fuck semi-blue blood born of C-section by some cumdumpster thinks of value when all the man has done is valueless.
That's not true. TimTim has usable organs that can help people.
AIG are such a crock of shit. Every time I see them say sell, i buy more.
That guy from FFT is oz is good, I been following him for a while and he called the market crash in 2008.
I belong to his membership site, its awesome and has live videos and everything to follow along. Makes it
easy to take money from the market even if you are a newbie!.
His new monthly trading club is opening tomorrow, and over at :-
http://www.forecastfortomorrow.com/Trading-Club
kick me once, shame on you............
What a Clown Show this is...
And where's the bearded lady?
Last I heard, she's in China with Jeethner
Next, show us the Bernank wearing an orange wig, red nose, and size 22 white shoes running around with the seltzer bottle putting out fires.
Timmay the Geek, of course, is part of the sideshow, not the circus proper. Freek-OH-Nature boy.
who took the pipe on all of the CDS outstanding on this pig?
Why you did, if you are a US taxpayer.
I present and a post that started my real ZH addiction. How the banks once again benefitted (when the needed it most) at the the US taxpayer expense:
http://zerohedge.blogspot.com/2009/03/exclusive-aig-was-responsible-for-banks.html
Hi, I'm Top, and I'm an addict.
+2 Zero Hedge has confirmed my faith that I can believe in something. That the U.S. capital markets are ran by Crooks who belong in Jail.
Hi! my name is James.. and I am an addict! BITCHEZ!!!
did the entire 900B in tarp money go to AIG and Goldman? Paulson said, that there would be riots in the street if congress didn't pass tarp. yeh sure.
There would have been...all those dumbasses tanking the place would have hired proper slaves to help them revolt.
ZH got us the Bloomberg Window operations that the FED did. The FED literally gave money to every bank in the world who had any connection with Goldman Sachs, AIG, BAC, JPM, LEH, MER, BSC and any other bank that was up side down. If you missed it. You missed the America's biggest financial fraud EVER engineered by GS. Totally Amazing.
Where are the Riots in the Streets. Americans are Sheeple for sure. We are Japan Now.
Kitchen sink bitchez!
i'm rinsing radioactive strawberries in mine. i've come to prefer them glowing in the dark---they stay fresher, longer!
i have out-of-the-money puts on the kitchen sink. from the FED, BiCHeZ!
the FED is my landlord; i shall not want.
end the FED.
Let AIG take Citi's place at 4 BennieBux a share, pomo pump it to break even and dump it.
Problem solved.
Its almost like watching flooded homes wash down the mississippi. Was that Huck's dad who just went by?
Ah, and so Timmah's now a market timer... a speculator with taxpayer monies.
And while we're at it, ain't Homomma been a tad slow in declaring the Mississippi River Flood Basin a fucking Disaster Area, sorta in the tradition of the Bush degeneracy with Katrina?
Oh, neverthefuckmind.... Must just be my late in the day bullshit fatigue showing through.
AND BTW, check this out for shits and grins
http://www.libertynewsonline.com/imagegallery_301_53176.php
Taxpayers' Profits BITCHEZ!!!!
Love the South Park clip. Ill be watching that spoof of the royal wedding tomorrow
This smacks of treasury desperation for cash. Hope Bonds bitchez! As in we **hope** we get our money back.
The Treasury holds 92.11 percent of AIG and has a break-even point of about $28.72 per share on the stock...
That $52B market cap is so bogus.
ahh, the triple (double-contiguous) "bitchez" protocol, normally for emphasis, but can be construed as behemothic disgust....
shit, Buzz, you edited out the double-contiguous bitchez while I was writing. Can't win today.... lol
bitchez. bitchez. bitchez.
(i pay better interest than the .gov :snark:)
as in >zero? shit, actually you put out 33%. excellent returns.... sign me up
AIG is the gift that keeps giving....also FNM/FRE (which are also trading below their IPO price)
A single chicken Mcnugget is worth more than a share of FNM, or, FRE. Ahhhhhh, I'm lovin' it.
Sim Market 4000.
(Exciting Sand Box Mode available in the soon to be released Expansion Pact, erm Pack)
I hope there's a Fed Reserve monument building and a QE disaster button/monster.
Timmy is a piece of shit. He sold me down the river. He did not do 1 thing to help me. Obama is a piece of shit too. He & Tim should coagulate. Want votes in 2012? Go fornicate, ain't gonna happen. And Ben's head will be on a stick, bitchez. say goodnite.
“Fall of the Republic” HQ Movie http://goo.gl/EwUsC it is worth 2 hours of your time. 4 everyone JW apporved!
AIG is worth its wait in Benny Bucks...
"jeopardising taxpayers’ profits on the share sale."
I need four fingers of Jack to swallow that with.
from finance.yahoo:
There is no Balance Sheet data available for AIG.
Do a 5-1 split and HFT the fuck out of this bitch. Problem solved.
makes a great tramp stamp.
They need a sweetener. How about a wheelbarrow of t-bills with ever AIG share certificate? At least you'd have some tinder for the coming Kondratiev Winter.
Apparently there was no opportunity cost to having that money tied up at AIG
Taxpayers are reaping huge profits from TARP, GM, Fannie/Freddie, and AIG bailouts. That's what the lamestream media has been parroting since 2009.
All of those profits must be driving down the labor participation rate.
They better stuff that pig with all of the treasury puts the fed has before they spin it off. Better to have AIG be the next AIG than the Fed
Bud, AIG is the dog with fleas you get to sell to others. Tell me something I don't already know, besides that 28 3/4 is the Treasuries BE on that flea ridden dog.
- Gordon Gekko
I wonder when all these misfits are collapsing the market (including the "protected") because the markets won't be able to digest and just puke out the bad oyster and there will be a 2 week's recess because of sickness
" this despite 2 years of endless market levitation, forced short squeeze, margin hikes, several wars, $4 trillion in monetary and fiscal stimuli, and most certainly, the kitchen sink."
Makes you nostalgic for the good old days 3 years ago, when what you didn't know, couldn't hurt you.
At least not until Paulson spilt the beans and Obama took office.
In control of markets?
I'm not so sure he's in control of his bedtime.
Washington bailed out AIG and Wall Street.
Washington lost the "full faith and credit" of the responsible populace.
ooops
Nonsense: the PEOPLE bailed out the banker-gangsters.
And now, the banker-gangsters (and their lackeys on the ZeroHedge message board) demand austerity from those same people.
"Crush the people and liquidate everything. Just don't cut off my pipeline to the government dole," say the banker-gangsters.
That's what I meant, Washington bailed out the banksters via the people, and all "We the People" get is "austerity" (i.e. - those of us that paid into the system for 30+ years get less than we were promised and will pay more taxes.).
Put me down for 100 giggles, 50 belly laughs, 25 snorts, and a sore tummy from busting a gut.
Gang, they need at least 4 more reverse stock splits before selling that crap.
Then they can proceed to 1.12 per share again with honor AND distinction.
By 'union lubricating' I guess TD meant that those sacrosanct UAW contracts being invalidated by the government and the banker-gangsters.
That's capitalism, baby: CAPITALISTS make promises to the workers when they're needed, and then drive a fucking dagger into their heart when it comes time to honor them.
The so-called bailout of GM was a Crown Jewel for TD's ally, the Union Buster in Chief.
None of the Waltz Street jocks want to swap spit with this herpes infested chick, for god sake the whole school knows she's a leaky tramp, except lil timmy and he's got warts on his tallywacker now
priceless, is the price.
AIG is the symbol of everything that went wrong, everything that was done wrong and everything that continues to smell like a dead whale drenched in rotten Banksta bailout sauce.