Comments on: How much is AIG worth?

By: Brian

Brian — Thu, 18 Sep 2008 18:38:09 +0000

If AIG was the largest North American insurer by assets, and is worth 106 .25 B to the US government (which bought .8 for 85 B), then the government could nationalize American health insurance companies for less than that.

By: peter ramus

peter ramus — Wed, 17 Sep 2008 04:14:40 +0000

A couple of questions:

The Fed is taking an 80% share in AIG for $85 billion. As long as they’re throwing money at the problem, why didn’t they just take over the whole operation?

Is buying up insurance companies covered by some obscure “other duties as assigned” clause of the Fed’s legal mandate?

Thanks.

By: nnyhav

nnyhav — Wed, 17 Sep 2008 01:16:02 +0000

this just in

By: stuart

stuart — Tue, 16 Sep 2008 16:02:48 +0000

It is important to see how the losses compare to the total size of the business parts that caused them, and how one part of the company can make such losses that the rest is dragged down with it.

Of course normally one part of a business failing wouldn’t be too bad – the other, still successful, parts can usually be spun off and sold as a worst case scenario. With the credit crunch it is going to be much harder to find a buyer for any such division, and so the price you would expect them to fetch will be proportionately less as well.

By: Zamfir

Zamfir — Tue, 16 Sep 2008 14:23:17 +0000

On John Quiggin’ update: I would say there is a reason to ention their aircraft business, and any other businesses they have that are operating fine.

It is important to see how the losses compare to the total size of the business parts that caused them, and how one part of the company can make such losses that the rest is dragged down with it.

The mention of GE is interesting, by the way. GE owns GECAS, the second largest aircraft leasing company…

By: Rofe

Rofe — Tue, 16 Sep 2008 10:56:53 +0000

One reason that Obama isn’t making major political hay out of the situation may be the fact that – despite the pure Schadenfreude of seeing loads of those Masters of the Universe types getting their comeuppance – this financial crisis has only been getting worse for the past 12-16 months and plain old folks are getting very worried.

Pointing out with glee, “See, I told you so !” has limited traction in this environment and perches precariously over significant blowback risk.

Not to mention the fact that if Obama wins, he’s the one who’s going to be dealing with the aftershocks for some time to come.

Cheers,

By: nick s

nick s — Tue, 16 Sep 2008 08:06:06 +0000

A question: what are the odds of AIG being worth more than Manchester Utd, the team it agreed to pay $100m over four years to sponsor?

By: Shelby

Shelby — Tue, 16 Sep 2008 05:18:56 +0000

Before those looking to tie any of this debacle to politicians of any particular tribe get too far into the tying, they should make sure those of the other tribe aren’t equally culpable. From what I’ve read to date, that isn’t the case.

By: tinbox

tinbox — Tue, 16 Sep 2008 02:19:48 +0000

It will be difficult for Sen. Obama to highlight Social Security because he ran with the GOP talking points to bash Sen. Clinton (last November’s debate). Obama believes there is a significant problem in SocSec that should be addressed with higher payrolls taxes on the (>250K/yr) wealthy. Is that a big vote-getter?

By: Markup

Markup — Mon, 15 Sep 2008 21:56:13 +0000

‘’How much is AIG worth?’’

One quote I ‘liked’ was, “… it’s worth [what could have been] health care reform,” referring to the larger folly being played out. Now they’ll be right when saying it’ll cost too much [of course that will still be short term thinking].

By: a

Mon, 15 Sep 2008 19:58:46 +0000

Adrian’s #1 comment is correct. AIG’s aircraft leasing business is valued at 7 to 14 billion, not 50 billion.

By: Markup

Markup — Mon, 15 Sep 2008 19:37:44 +0000

Perhaps a new tact from those darn regulator types [Dems] would be to put that the first order of biz will be to round up the top ten on the most wanted list – ie those who received a performance bonus over 20% of base pay and had their company become more or less worthless within a year and who did not under their own initiative resign and return bonus or more. To Leavenworth they go as Nat security dangers which should be hard for the Rep’s to argue with seeing how a war for Nat [economic] interest can be waged. At least this way we do not violate the Geneva Conventions… perhaps. Following them will be NCAA div. 1 football coaches; those who get paid more than 3x median income per game and lose or have a [lax] sub 50% graduation rate. These folks will be treated like common drug dealers and have all assets [including offshore and Fla] seized and perhaps put in the SS ‘lock box’. Obviously while incarcerated they will be allowed to eat cake, so long as it contains meal worms or some other protein source. Alternately instead of insects they would be allowed to go cannibal on each other, after all it is a dog eat dog world.

A review of the whole of the leased equip scheme[s] is long over due; while ‘innovative’ and ‘efficient,’ they really just amount to a pass the buck shell game / tax dodge.

By: David in NY

David in NY — Mon, 15 Sep 2008 19:32:49 +0000

Hubert Humphrey damn near pulled the ‘68 election out by talking about social security in the last 10 days. I like Emerson and others can’t figure out why Obama hasn’t learned a thing from this, and other things like it (he seems barely to have considered the fate of a guy named Dukakis).

By: Ed

Ed — Mon, 15 Sep 2008 19:07:34 +0000

I second that John E. made an excellent point. Remember the social security privatization that was proposed in 2005? Where do you think the money was going to be invested to produce higher returns than in the social security system? The Democrats really should be hanging this around any of the their opponents who argued for the scheme.

By: Maurice Meilleur

Maurice Meilleur — Mon, 15 Sep 2008 18:46:14 +0000

Um, that should be ‘#9’. I thought I typed ‘9’. Preview?