Double Wow, Indeed...AIG

Posted by: Michael Mandel on September 17

Maybe now I can get my auto insurance from the Fed

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Reader Comments

Sandeep

September 17, 2008 08:31 AM

There is some unintended humour in AIG commercials and a video of Lehman CFO - check it out at my blog: spparekh.blogspot.com

Mike Reardon

September 18, 2008 03:42 PM

The assets of AIG with Fannie and Freddie now controlled by the Federal Government total about $4 trillion, even with losses causing those assets dropping substantially the Feds investments are fully recoverable. The Board of AIG should still demand a large voice in any sale to repay the Fed the $85 billion that control there $1 trillion assets. It is to much money inside the hands of undefined government control. Everyone should be looking at these assets as open to abuse in recovery of government funds. That $4 trillion amount. If sold at minuscule prices in the now distressed situation could end with a wealth transfer looking like Russian distribution to the Oligarchs. $2 Bears Stern stock sale is an example it was sadly then revalued to $10 a share in a total collapse. It is an open question what the Federal Government distribution for recovery would look like.

News today, McCain signed on to RTC at 9:am, Mortgage Finial Trust (MFT) in a speech. Paulson backstopped it at 12:pm, are they working with McCain or what?

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Michael Mandel, BW's award-winning chief economist, provides his unique perspective on the hot economic issues of the day. From globalization to the future of work to the ups and downs of the financial markets, Mandel-named 2006 economic journalist of the year by the World Leadership Forum-offers cutting edge analysis and commentary.

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