AIG

Interesting summation of the AIG populist anger from an employee's point of view.

Interesting twist in Aigbonusgate: WSJ reports that Obama will force AIG to re-repay bailout funds for money that is spent on bonuses (which of course makes no sense at all):

Interesting twist in Aigbonusgate: WSJ reports that Obama will force AIG to re-repay bailout funds for money that is spent on bonuses (which of course makes no sense at all):

Anyone hearing anything? Presumably this is not in response to a lynch mob.

First rumor of the day: AIG physical shares are soft, extra absorbent and two ply.

Second rumor: as ZH speculated previously, gov't is recalling financial shares from repo window causing massive squeeze... Disclosure: ZH is long Citi stock just for this event.

Late Sunday, AIG, which all of a sudden "recognizes the importance of upholding a high degree of transparency with respect to the use of public funds", finally caved to pressure to disclose the full list of recipients benefiting from collateral payments after its repeated rescues. No major surprises among the bank recipients: the top 5 include Societe Generale, Deutsche Bank, Goldman Sachs, Merrill Lynch and Calyon. Additionally, of the top 20 beneficiaries, 14 banks are non-domestic!

ter?ror?ist? /?t?r?r?st/ [ter-er-ist]

–noun
1. a person, usually a member of a group, who uses or advocates terrorism.
2. a person who terrorizes or frightens others.
3. (formerly) a member of a political group in Russia aiming at the demoralization of the government by terror.
4. an agent or partisan of the revolutionary tribunal during the Reign of Terror in France.
5. American International Group

Reader Mike points out an interesting potential selling opportunity in AIG 1 Yr CDS, which is trading on one of the most inverted curves in CDS land. As a collapse of AIG would be equivalent to the blasphemous "credit event" of U.S. Sovereign CDS, having to pay for the settlement on 1 years in AIG seems like an oddly armageddonesque prospect.

Reader Mike points out an interesting potential selling opportunity in AIG 1 Yr CDS, which is trading on one of the most inverted curves in CDS land. As a collapse of AIG would be equivalent to the blasphemous "credit event" of U.S. Sovereign CDS, having to pay for the settlement on 1 years in AIG seems like an oddly armageddonesque prospect.

The financial Black Hole formerly known as AIG is close to a deal with the U.S. government that would ease the terms of its bailout, provide a further equity commitment and help it pay down debt, a person familiar with the matter said on Saturday. The revised agreement is expected to include an additional equity commitment of $30 billion. Additionally, per Reuters:

This is simply pathetic.

"Give me your toxic debt, your default mortgages, your huddled worthless assets yearning to be offloaded on the taxpayer's balance sheet"

PS: Send printing presses

But, but...this was all contained the last time the company lied about its current state... Looks like US Taxpayer Capital LLC will need some CDS salespeople/traders as it is the unwitting recipient of a $300 billion CDS book.

Feb. 26 (Bloomberg) -- American International Group Inc. may get a backstop from the U.S. to protect against further losses on credit-default swaps, according to a person familiar with the matter.

The latest chapter in the National Geographic special on the AIG black hole is that the company will scrap the plan to repay the $60 billion governmental loan by selling businesses, as no bidders for its assorted businesses have materialized. Bloomberg reports:

Developing bombshell: David Faber reporting that AIG has retained Weil Gotshal ahead of a possible bankruptcy filing this weekend. The reason is that the company will allegedly post a $60 billion loss, which will result in the usual cycle of credit downgrades, collateral postings, more capital needed to survive, and yet another mega systemic if not shock then question mark. Poor Geithner is likely about to follow Stamatis' example and just call it a day.