Looks like AIG may be going bankrupt......

[cougjunkie]

They are the largest insurer in the world and currently have over 1 trillion dollars in assetts and operate in over 130 countries. Also the feds are meeting today and most are expecting another rate cut.

[Archaea]

This is not good, who will sponsor Manchester United now.

[MikeWaters]

AIG, good, I hated their commercials.

Now if only the Dennis Hopper company would go out of business.

[Flystripper]

They are the largest insurer in the world and currently have over 1 trillion dollars in assetts and operate in over 130 countries. Also the feds are meeting today and most are expecting another rate cut.

Not the best news I have heard today. Since I have a 3 million term life insurance policy with them. :(

[cougjunkie]

Not the best news I have heard today. Since I have a 3 million term life insurance policy with them. :(

Bettery hurry up and die.

[Flystripper]

Bettery hurry up and die.

Haha thanks bud! A ray of sunshine you are!

[ERCougar]

Not the best news I have heard today. Since I have a 3 million term life insurance policy with them. :(

Me too...
But thank goodness it's only term life.

[BYU71]

Me too...
But thank goodness it's only term life.

Other insurance companies will be happy to step in and take over your policies. Paying on death benefits isn't what has these guys going down the toilet.

If Wamu and AIG are going under, let's get it over with and not string it out like we did with Lehman.

[ERCougar]

Other insurance companies will be happy to step in and take over your policies. Paying on death benefits isn't what has these guys going down the toilet.

If Wamu and AIG are going under, let's get it over with and not string it out like we did with Lehman.

Good to know...I was actually wondering what I was going to do with that if they end up going bankrupt.

[MikeWaters]

I'm glad that my tax money is going to save AIG, and all their rich cronies. Very nice.

[creekster]

I'm glad that my tax money is going to save AIG, and all their rich cronies. Very nice.


Better still, it looks like you are going to be a part owner of AIG! What a country!

[il Padrino Ute]

I'm glad that my tax money is going to save AIG, and all their rich cronies. Very nice.

Do what I do Mike - put your money in Mason jars and bury them in your backyard.

[Indy Coug]

Here's the question:

In the event of insurer insolvency (which is the path that AIG is on), the government is obligated to step in and take over the business. Is it better to step in before insolvency or after?

Government intervention is going to happen either way. Does "proactive" intervention mute the huge ripple effect in the market that the failure of a company that employs 116,000 people and insures 74 million people worldwide creates, thereby preventing the need to intervene elsewhere as fallout spreads like a virulent disease?

Pick your poison. One might just temporarily paralyze you, the other will kill you and leave your lawn a toxic waste dump.

[MikeWaters]

Here's the question:

In the event of insurer insolvency (which is the path that AIG is on), the government is obligated to step in and take over the business. Is it better to step in before insolvency or after?

Government intervention is going to happen either way. Does "proactive" intervention mute the huge ripple effect in the market that the failure of a company that employs 116,000 people and insures 74 million people worldwide creates, thereby preventing the need to intervene elsewhere as fallout spreads like a virulent disease?

Pick your poison. One might just temporarily paralyze you, the other will kill you and leave your lawn a toxic waste dump.

Bullshit. This company was covering financial instruments for other companies.

Now instead of letting the dead man die we turn him into a taxpayer owned frankenstein.

I love this. We are finding out who the true conservatives are. Indy is pathetic.

[MikeWaters]

The regular insurance part of this company is perfectly healthy and would have been sold, so take your ignorant fear-mongering some place else.

[FMCoug]

It's time to start a business! Private profits and socialized losses! What a country.

[MikeWaters]

It's time to start a business! Private profits and socialized losses! What a country.

the trick is that you have to big enough and irresponsible enough that if you go down, lots of powerful and rich people go down. the govt. won't let you go down.

[Indy Coug]

The regular insurance part of this company is perfectly healthy and would have been sold, so take your ignorant fear-mongering some place else.

Having worked for a company whose "regular insurance part" was healthy and went Chapter 11 anyway (Conseco), I'll file your response in the newly expanded "Ignorant Waters comments" warehouse.

[MikeWaters]

Having worked for a company whose "regular insurance part" was healthy and went Chapter 11 anyway (Conseco), I'll file your response in the newly expanded "Ignorant Waters comments" warehouse.

and who lost their insurance as a result? that's right, no one did.

[Indy Coug]

and who lost their insurance as a result? that's right, no one did.

Global ripples if firm were to fail

The failure of AIG could have caused unprecedented global ripple effects, said Robert Bolton, managing director at Mendon Capital Advisors Corp. AIG is a major player in the market for credit default swaps, which are insurance-like contracts that guarantee against a company defaulting on its debt. Also, it is a huge provider of life insurance, property and casualty insurance and annuities.

"If AIG fails and can't make good on its obligations, forget it," Bolton said. "It's as big a wave as you're going to see."

http://money.cnn.com/2008/09/16/news/companies/AIG/index.htm?cnn=yes

[MikeWaters]

http://money.cnn.com/2008/09/16/news/companies/AIG/index.htm?cnn=yes

I take this as an admission of complete defeat and complete ignorance.

[Indy Coug]

I take this as an admission of complete defeat and complete ignorance.

Stick to pop psychology, Mike.

[MikeWaters]

Stick to pop psychology, Mike.

Seems like being in the insurance business you ought to know what you are talking about. Shameful how you alleged people would lose their insurance coverage, and now that I have called you out, you have backed down.

[Indy Coug]

Seems like being in the insurance business you ought to know what you are talking about. Shameful how you alleged people would lose their insurance coverage, and now that I have called you out, you have backed down.

People don't lose their insurance coverage because the government, by statute, will step in; which I stated in my original post. The whole argument here is that pre-emptive action is less costly than trying to pick up the pieces after the explosion.

[MikeWaters]

People don't lose their insurance coverage because the government, by statute, will step in; which I stated in my original post. The whole argument here is that pre-emptive action is less costly than trying to pick up the pieces after the explosion.

<sigh>. BYU71, please talk some sense to him.

[Indy Coug]

<sigh>. BYU71, please talk some sense to him.

Translation: I have no clue what I'm talking about and so as an act of desperation, I'm hoping that BYU71 will agree with me.

[MikeWaters]

Translation: I have no clue what I'm talking about and so as an act of desperation, I'm hoping that BYU71 will agree with me.

BYU71 has already addressed this point. I figured he needed to repeat it.

[creekster]

People don't lose their insurance coverage because the government, by statute, will step in; which I stated in my original post. The whole argument here is that pre-emptive action is less costly than trying to pick up the pieces after the explosion.


What statute are you talking about?

[il Padrino Ute]

What statute are you talking about?

The Statute of Liberty (Mutual).

I know. Really bad. But I'm tired and my brain...

Let's just say I'm tired and leave it at that.

[Indy Coug]

What statute are you talking about?

The NAIC crafts model regulations which in turn are adopted by most states in some adapted form.

http://www.cato.org/pubs/regulation/reg14n2d.html

http://info.worldbank.org/etools/docs/library/157425/capacity/pdf/insolvency.ppt

[creekster]

The NAIC crafts model regulations which in turn are adopted by most states in some adapted form.

http://www.cato.org/pubs/regulation/reg14n2d.html

http://info.worldbank.org/etools/docs/library/157425/capacity/pdf/insolvency.ppt


There is a lot of devil in those details. It is true that there are regulations regarding insurer solvency, although the reserves can be manipulated and many of the state by state regs can be circumvented in various ways.

It is also true that many states have a guarantee association that is funded either by other insurers (mandatory participation) or by the state or both. These guarantee associations vary rather dramatically in how they operate, however and in how much relief they give any given policy holder or third party claimant. It is not accurate, in my mind, to say that the government is required by law to stand behind those obligations. It just doesnt' work that way. Moreover, I have never seen a carrier the size of AIG throw its obligations onto a g-tee association. It would potentially be catastrophic in its effect on the insurance markets, as I am sure you apprecaite more than probably anyone here.

I am a ltitle freaked out by the AIG situation, to tell you the truth. It bothers me more than the other bankruptcies. THis is a HUGE company with huge policy obligations and a huge role in the guarantee market and that would have all ground to a halt if there was a bk. It is a little frightening.

[SteelBlue]

Govt. steps in with massive loan:

http://money.cnn.com/2008/09/16/news/companies/AIG/index.htm?cnn=yes

[SeattleUte]

There are so many things disturbing about this. The leftist Barney Frank sums it up, both in his condemnation and in his solution and attitude: “I mean this is one more affirmation that the lack of regulation has caused serious problems. That the private market screwed itself up and they need the government to come help them unscrew it.”

http://www.nytimes.com/2008/09/18/business/18insure.html?_r=1&hp&oref=slogin

Now the United States government effectively owns and controls the largest insurance company in the world.

Hitler used these types of crises as part of his program to dismantle the Weimarer Republic.