Blog Entries tagged 'AIG' http://clearrock.net Thu, 29 Jul 2010 22:53:53 +0100 FeedCreator 1.7.2 http://clearrock.net/index.php/Sectors/205-Toxic-Assets...-Effecting-More-Than-Just-Wall-Street.html <p>As we head into earnings season (and into a new administration) we arebound to hear more and more about &quot;toxic assets&quot; and how they are impairing recovery for banks - and the economy as a whole.</p><br/><p>Here is a little more on just what &quot;toxic assets&quot; means:</p><br/><p>&nbsp;</p><br/> clearrock Thu, 22 Jan 2009 22:00:00 +0100 Transportation Acquisitions Printing Insurance MA AIG http://clearrock.net/index.php/Sectors/181-Clear-Rocks-Brian-Burke-Hosting-Conference-Call-Today.html <p>Brian&nbsp; Burke will be hosting a conference call today at 2 p.m. to discuss the AIG situation and how it is likely to impact agency owners. &nbsp;</p><p>Conference Dial-in Number: (269) 320-8100<br />Access Code: 524868#</p> clearrock Tue, 16 Sep 2008 22:00:00 +0100 Insurance MA AIG http://clearrock.net/index.php/Sectors/180-How-can-the-Fed-Offer-a-Bridge-Loan.html <p>Didn't think that the Fed could simply starting making loans, did you? Neither did we.</p><br/><p>Fortunately we were not the only ones curious - hence we didn't have to look to far. Apparently the Federal Reserve Act of 1933 (Section 13(3) to be precise) allows the Fed to make direct loans under &quot;exigent circumstances.&quot;</p><br/><p>Seems that this week's developments could fall under the rubric of &quot;exigent.&quot; </p> clearrock Mon, 15 Sep 2008 22:00:00 +0100 Insurance MA AIG http://clearrock.net/index.php/Sectors/179-Bridge-Loan-is-In.html Fed is offering a $85b (yes billion) bridge loan to AIG. In return, AIG will give up some 75% of equity. <br /> clearrock Mon, 15 Sep 2008 22:00:00 +0100 Insurance MA AIG http://clearrock.net/index.php/Sectors/178-What-is-a-Conservatorship.html <p>For all the Agency and Company readers- you may not have read the fine print on the conservatorship from the Frannie and Feddie debacle last week. Afterall, its not that often that we get talking about these things.</p><br/><p>So what is it? Essentially, it is a mechanism for the gorvernment to take control of an organization with the intent of continuing the run it - often times in preparation for a sale. This contrasts to a receivorship, which is when the appointed entity is conducting an o [...] clearrock Mon, 15 Sep 2008 22:00:00 +0100 Insurance MA AIG http://clearrock.net/index.php/Sectors/177-Conservatorship-and-Bridge-Loan.html <p>Some details are emerging here - sounds like AIG will be placed into a conservatorship in return for a massive bridge loan. AIG has continued to reiterate that they are well collaterlized, but as issue is liquid capital to meet requirements. The bridge loan will enable to AIG to conduct an orderly liquidation to meet capital requirements.</p><br/><p>We'll point out, though, that this loan will essentially wipe out all shareholders - not sure of the details yet, but likely that the gov't will [...] clearrock Mon, 15 Sep 2008 22:00:00 +0100 Insurance MA AIG http://clearrock.net/index.php/Sectors/176-Back-and-Forth-with-Treasury.html <p>Gasparino on CNBC is reporting that the Gov't is starting to cave somewhat on the AIG bailout.</p><br/><p>By now its old news, but to recap - the issue isn't AIG's P&amp;C lines, etc, but rather their exposure to other financial products. AIG is a counter party to billions of credit default swaps and other derivitives - essentially underwriting those assets with pretty much every major financial institution. This interwovenness is what is giving the gov't angst - a metldown here (rather than t [...] clearrock Mon, 15 Sep 2008 22:00:00 +0100 Insurance MA AIG http://clearrock.net/index.php/Sectors/175-GS-JP-Morgan-Out.html <p>Both have confirmed that they are out of the deal. This vastly increases the pressure on both the Fed / Treasury, as well as AIG's board.</p><br/><p>We've continued to hear rumors all day - and rampant speculation amongst industry analysts- that this deal would never happen. Now we are in a wait and see mode. </p><br/><p>&nbsp;</p> clearrock Mon, 15 Sep 2008 22:00:00 +0100 Insurance MA AIG http://clearrock.net/index.php/Sectors/174-AIG-Ratings-Cut.html <p>Both Moody's and S&amp;P have now downgraded AIG. We can talk chicken and egg here, but their stock price is now down volitile in the $2-4 range. The combined effect is that AIG is in a near-impossible position in trying to raise a massive amount of capital.</p><br/><p>It will be interesting to see through the day how successful they are - the gov't is pushing Goldman and JP Morgan to lend nearly $75b to AIG. While the screws are being turned, we aren't hopeful that either bank is in a positi [...] clearrock Mon, 15 Sep 2008 22:00:00 +0100 Insurance MA AIG http://clearrock.net/index.php/Sectors/173-The-Latest-with-AIG.html <p>As an agency owner, the AIG situation likely has been cause for angst today. Keep an eye here as we continue to post analysis on what it means for you.</p><br/>2 p.m. - It is looking like no capital raise from GS, etc for AIG. Bailout? dandoran Mon, 15 Sep 2008 22:00:00 +0100 Insurance MA AIG