What if you own a disproportionate amount of the next Enron or AIG?
When Attorney General Spitzer heard that news, he issued an unalloyed threat: Greenberg must relinquish his remaining title, chairman, or AIG should prepare for possible criminal indictment.
Meanwhile, shares of the giant insurer American International Group, or AIG, dropped again as investors questioned whether it would be able to come up with enough money to stay in business.
The reform will reduce the risk that institutions that wrote these derivative contracts - like Lehman Brothers or AIG - fail to pay out the amount they owe when they go bust.
In certain quarters big gains from Apple, or reversals of year-earlier losses from bailout alums like Bank of America or AIG have given growth rates a major boost.
FORBES: Mr. Market Doesn't Seem To Care That S&P 500 Earnings Have Hit The Wall
But is this legislation designed to prevent AIG from doing that, or to unwind AIG if they do it?
We can't allow another AIG or another Lehman to happen again.
And the principles behind exiting investments like the ones in AIG or in General Motors have been that we have been committed to exiting those investments as quickly as practicable, but always with a mind to taxpayer interests.
It was -- every day he had some economic plan out there, and every day it was AIG, or Geithner, or the comments on Leno.
Think about it this way, if given the choice back in 2008, would you have paid your share to save AIG, or any other financial institution, and in turn its creditors?
But the Obama administration would like it sooner, certainly before the 2012 elections so it could declare it made a profit on the AIG bailout or at a minimum it will make a profit when all the shares are sold in the biggest bailout in American history.
But understand, even what we're talking about under that authority with AIG, or the authority of putting some entity in bankruptcy for the purposes of, as the President discussed, breaking apart and liquidating, is far different than what the President spoke about and is contemplating as part of this.
Though not a bank or a primary dealer, AIG can get access to the window if the Fed feels the situation is urgent.
It is not the Lehman Brothers calamity or the horrendous costly bailout of AIG to save finance from collapsing.
Without the resolution regime, regulators might face the same unappetising choices they had in 2008: allow the firm to go bankrupt (like Lehman Brothers) or bail it out (like AIG).
Without getting into the issue of whether the people at AIG deserved those bonuses or not, I think what the markets focused on was the potential for a complete unraveling of our economic system.
What is not yet known is how the company was able to report steady 15% annual profit gains year after year, or all the details of why AIG's accountants would not approve the company's financial results for 2005.
Spokesman Darren Dopp noted that the dropped charges were wholly unrelated to, and less serious than, the core charge of fraud that it had filed against Greenberg and Smith, mainly on the basis of risk transfer transactions with General Reinsurance , or GenRe, that allegedly misstated AIG's financial health to its shareholders.
Two, even if he did have standing, the government acted in buying AIG without any intent to promote or become involved in religious questions.
Banks can exploit the regulations' inevitable blind spots: assets hidden off their balance sheets, or insurance (such as that provided by AIG) which enables them to profit by sliding out of the capital requirements the regulators set.
You could, for example, buy the iPath Dow Jones-AIG Lead Total Return Sub-Index or PowerShares DWA Emerging Markets Technical Leaders.
New York's governor gave AIG until Wednesday to secure a injection of capital or a credit facility.
For example, an investor or bank may have bought a swap as insurance against an AIG default, with Lehman on the other side of the deal.
ECONOMIST: The fallout from the bankruptcy of Lehman Brothers
Traders were accused or orchestrating successful, rumor driven raids on Bear Stearns, AIG and Lehman Brothers as well as taking down the share price of Citigroup and Bank of America.
Pursuant to the EESA, the government has injected AIG with tens of billions of dollars, without restricting or tracking how this considerable sum of money is spent.
AIG, to many, joined famous marks such as BP or ENRON, names permanently stained in the minds of some.
FORBES: Has AIG's Non-Lawsuit Built Goodwill, Or Just Avoided Damaging It?
Citigroup, Bank of America, AIG and the housing enterprises Fannie Mae had to be bailed out or taken over.
AIG's former chairman Maurice Greenberg said Tuesday that without a loan or any other injection of capital from the outside, the giant insurance company would be bankrupt.
The committee's charter says its responsibility include making recommendations to the full board regarding AIG's compensation programs and reviewing and approving any hiring, severance or termination payments.
应用推荐