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US Treasury Moves To 'Sell' Recommendation On AIG

Tyler Durden's picture




 

In a move that we can only presume is to provide more room in their book for some GM Fleet purchases or Twinkie benefits, the US Treasury just announced (via Bloomberg):

  • *TREASURY ANNOUNCES OFFERING FOR ALL OF ITS REMAINING AIG SHRS

but:

  • *TREASURY SAYS IT WILL CONTINUE TO HOLD WARRANTS FOR AIG COMMON

AIG's share price is sliding (-3.5% AH) - surprise - as the decision to liquidate 234 million shares (10x the recent daily average) into such a highly liquid market will, we are sure, be spun as nothing but positive (and a great success for Geithner et al.). Of course, unwinding the even more illiquid warrants was not on the cards. Interesting timing following the sale of AIG's ILFC unit so close behind to the Chinese.

 

WASHINGTON - Today, the U.S. Department of the Treasury announced that it has launched an underwritten public offering for all of its remaining 234,169,156 shares of American International Group, Inc. (AIG) common stock.

 

If the offering is completed, Treasury would continue to hold warrants to purchase AIG’s common stock that were also issued as part of AIG’s participation in Treasury programs.

 

 

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Mon, 12/10/2012 - 17:53 | 3049883 buzzsaw99
buzzsaw99's picture

don't worry about the joo ceo, he got plenty

Mon, 12/10/2012 - 17:59 | 3049899 slaughterer
slaughterer's picture

Thanks "snark Tyler" for the update on one of the biggest financial hedge fund cockroach hotels of 2012.  If you do not think AIG is overpopulated with hedgies, you have mot done your 10 whal diving.  AIG is literally seething with hedge roaches who are now feeling the flashlight of the Treasury on their mangy carcasses.  

Mon, 12/10/2012 - 18:12 | 3049913 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

AIG should be the posterboy for the bailouts.  Although it was for a quick minute it seems everyone has forgot the mess they found themselves in.

Imagine, the markets collapse and AIG along with other insurers have their levered positions underwater so bad they can not meet obligations.  Their annuities fail, then life insurence fails, bonds get blown out and rates rise (bankrupting the US government), stocks keep getting blown out, everyone loses their savings, people get their savings out of the banks....

This is why the system went into collapse and this is why Bernanke put forth the measures that JP Morgan long ago dictated to stop these runs.  Yet the collateral to stem the problem was created out of thin air, to be paid back by future generations.  Future generations that will have to deal with no growth and higher taxes.

History will show this as a failure and the ultimate can kicking, if only ex post facto, but hopefully history also shows that the collapse was created by the same banks that collapsed.  It was Clinton under NAFTA that created the neo-global growth model that killed America, and it was Clinton and his handlers Summers and Rubin that got rid of Glass-Steagall.  The wars that we have fought since WWII made us bankrupt and the fiat standard created by monetary policy made sure no one could save any money.

Mon, 12/10/2012 - 19:04 | 3050052 gmrpeabody
gmrpeabody's picture

+100

Let me buy you a drink, (Consigliori) sir.

Mon, 12/10/2012 - 20:12 | 3050284 Augustus
Augustus's picture

Yes.  Nominate AIG as the posterboy.

Debt repayed.  Now the government makes a real profit from the confiscated equity.

So, what the poster should demonstrate is that the government will take any steps necessary to shaft investors.

Mon, 12/10/2012 - 18:42 | 3050010 unrulian
unrulian's picture

i think you mean the fleshlight

Mon, 12/10/2012 - 18:00 | 3049902 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Down big today and down after hours.  Looks like JPM et al got the word before the press did.

Surprise!

Mon, 12/10/2012 - 18:10 | 3049925 Yen Cross
Yen Cross's picture

LMAO! The U.S. Treasury is now a ratings agency? This gets better by the minute.

Mon, 12/10/2012 - 18:11 | 3049932 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

They should rate their bonds Quad A.

Mon, 12/10/2012 - 21:30 | 3050497 CPL
CPL's picture

Super double plus plus Quad A-Tastic!  

...out of ten.

Mon, 12/10/2012 - 18:18 | 3049954 Joe moneybags
Joe moneybags's picture

It's just tax-related selling.

Mon, 12/10/2012 - 18:23 | 3049961 Bastiat
Bastiat's picture

Buffet's on the bid!

Mon, 12/10/2012 - 18:23 | 3049964 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Buffet will buy anything he can call a "company".

Mon, 12/10/2012 - 18:31 | 3049969 Yen Cross
Yen Cross's picture

What really makes me have that (Don Ho) moment/ Is the [U.S. Treasury] is rating an "Insurance Company" that they partially own, after a major "Natural Disaster"  ... The hypocrisy? 
Don Ho sings "Tiny Bubbles" - Hollywood Palace 1/21/67 - YouTube

 

Mon, 12/10/2012 - 18:33 | 3049990 Seasmoke
Seasmoke's picture

should sell them on Groupon

Mon, 12/10/2012 - 18:37 | 3049998 greensnacks
greensnacks's picture

AIG has the funds to swallow this whole.

Mon, 12/10/2012 - 18:44 | 3050014 Yen Cross
Yen Cross's picture

The U.S. Treasury has the funds to swallow this whole. Fixed it for ya/

Mon, 12/10/2012 - 19:18 | 3050093 greensnacks
greensnacks's picture

describes the aig bailout and repayments.

http://projects.propublica.org/bailout/entities/8-aig

Mon, 12/10/2012 - 18:37 | 3049999 km4
km4's picture

Do Hedge Funds Manipulate Stock Prices? ( does a bear shit in the woods? )

http://blogs.wsj.com/ideas-market/2012/12/10/do-hedge-funds-manipulate-s...

Mon, 12/10/2012 - 18:44 | 3050016 benevolous
benevolous's picture

Come on and enjoy! It's a Christmastime, feel-good story.

 

UST out of AIG at a profit.

 

 

Mon, 12/10/2012 - 18:49 | 3050022 buzzsaw99
buzzsaw99's picture

It's a hanukkka, feel-bad story.

Mon, 12/10/2012 - 21:30 | 3050500 CPL
CPL's picture

Here's some socks, eight more days.

Mon, 12/10/2012 - 18:48 | 3050021 Seasmoke
Seasmoke's picture

Hank Greenberg wants some

Mon, 12/10/2012 - 19:33 | 3050132 yogibear
yogibear's picture

Hank Greeberg also likes to do a Cleveland Steamer on the taxpayer.

Mon, 12/10/2012 - 18:51 | 3050025 alfred b.
alfred b.'s picture

 

       The 'G' in AIG should stand for Geithner as he's the company's biggest benefactor...using taxpayer largesse.

 

Mon, 12/10/2012 - 18:51 | 3050026 Lumberjack
Lumberjack's picture

Chinese group buys AIG aircraft firm for up to $4.8 billion

http://www.reuters.com/article/2012/12/10/us-aig-ilfc-idUSBRE8B900J20121210

 

Oh, but there's more on the energy side being sold too. They can't get rid of this stuff fast enough.

Mon, 12/10/2012 - 18:53 | 3050031 buzzsaw99
buzzsaw99's picture

one must fund executive bonus somehow

Mon, 12/10/2012 - 18:58 | 3050043 JLee2027
JLee2027's picture

Sell to who? The entire market it seems is APPL, and GOOG.

Mon, 12/10/2012 - 19:28 | 3050118 yogibear
yogibear's picture

My, what a smelly turd. Speaking about turds, GM has been channel stuffing.

The taxpayer has become the financial sewage reclamation plant. Unfortunately the taxpayer has hit the maximum financial sewage limit. 

Mon, 12/10/2012 - 19:52 | 3050214 smart girl
smart girl's picture

And they don't even have to pay more taxes next year.

Mon, 12/10/2012 - 20:28 | 3050331 tip e. canoe
tip e. canoe's picture

wonder if it includes all of AeyeG's intelligence files?

http://www.fromthewilderness.com/free/ciadrugs/part_2.html

Mon, 12/10/2012 - 21:21 | 3050475 earnyermoney
earnyermoney's picture

Speaking of GM.

Interesting story flying under the radar.

 

http://freebeacon.com/bailout-on-the-brink/

Tue, 12/11/2012 - 13:55 | 3052372 Zymurguy
Zymurguy's picture

That would kill GM.  It might take some of the unions with it, so... meh... not such a bad thing I guess.

With all the inventory in the pipeline if GM has to pay back $30Billion, yikes!

Tue, 12/11/2012 - 09:47 | 3051570 GFORCE
GFORCE's picture

Treasury confirms top. 

Tue, 12/11/2012 - 13:56 | 3052380 Zymurguy
Zymurguy's picture

So, the Fed' conjures up billions to bail out AIG, then the Treasury takes over that debt (if I'm not mistaken there were some debt forgiveness points along the way though) and now all this is supposedly paid back, is that right?

Shouldn't the money that is paid back be deleted from the account since it was phoney to begin with?  Shouldn't we be reducing the dollar supply?

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