Damn. Busted. :hihi: Here's the plan. AIG will divest itself of all non Property and Casualty insurance businesses and transform itself into a lean and mean company known as AIG Commercial Insurance Inc. It will be the nation's largest and is estimated will be #59 on the Fortune 500. It will also be unencumbered by the US Treasury loan which will be paid back with interest.
AIG CLARIFIES AGENT MEETING NEW YORK, October 8, 2008 –American International Group, Inc. (AIG) Chairman and Chief Executive Officer Edward M. Liddy sent a letter today to U.S. Treasury Secretary Henry M. Paulson to clarify the circumstances of a business event held by an AIG subsidiary, discussed during an October 7, 2008 hearing by the House Committee on Oversight and Government Reform. The event, mischaracterized as an “Executive Retreat,” was held by one of AIG’s insurance subsidiaries for independent life insurance agents, not for AIG employees. These agents were top business producers for the company, and of the more than 100 attendees, only 10 were employees of the AIG subsidiary who were there to represent their company. No AIG executives from headquarters attended. The meeting was planned months before the Federal Reserve Bank of New York’s loan to AIG. In his letter, Mr. Liddy assured Secretary Paulson that AIG now faces very different challenges, and “that we owe our employees and the American public new standards and approaches.” Mr. Liddy assured Secretary of the Treasury Paulson that AIG is “reevaluating the costs of all aspects of our operations in light of the new circumstances in which we are all operating.” Mr. Liddy concluded, that “AIG is focused on doing what is necessary to address our capital structure, repay the Fed credit facility and emerge as a healthy global insurer. In the meantime, our insurance businesses continue to operate normally and satisfy the needs of our policy holders.”
GM and AIG are the ones that catch my eye although GM is now up about 60 percent from its low. Big established companies with lots of cash. I think we'll flounder around 9k for a while though.
Dow down 733 today, counting yesterdays loss, wiped out Monday huge gain, we are back to Friday's 8578. Market is betting on a hard recession. Gotta be some buys out there, but seems now baby is being thrown out with bath water. I have stepped aside, nose a little bloody right now. Luckily most money was in CDs.
