AIG selling 2 NYC buildings

CHARLOTTE, N.C. (AP) — The embattled insurer American International Group Inc. is selling its headquarters building in New York and a nearby building in a deal expected to close at the end of this summer, a person familiar with the matter said Wednesday.

But the person said that AIG is not disclosing the price or who the buyer is. The person asked for anonymity because the sale has not been made public yet.

The building sales are the latest move by AIG, which has received $182.5 billion in financial support from the government since September, to shed assets to repay the loan package.

The buildings are at 70 Pine Street and the adjacent 72 Wall Street in lower Manhattan.

The person said AIG employees will remain in its headquarters through 2010, and in the Wall Street building through the end of this year. The New York-based company is developing a relocation plan, the person said.

AIG is selling assets and spinning off some subsidiaries as it looks to raise new cash to repay government loans while becoming a smaller, more-efficient company. As part of the loan package, the government has also taken a roughly 80 percent stake in the huge insurance company.

AIG was devastated not by its traditional insurance operations, but by its financial products business, which underwrote risky credit derivatives contracts known as credit default swaps. The swaps are essentially insurance contracts protecting an investor against default on an underlying investment, such as mortgage-backed securities.

Rising defaults in the investments that AIG's contracts were insuring led to worries that the company would not be able to cover all of its obligations and that the ripple effects would touch off a new, even more intense phase of the credit crisis. That's when the government stepped in, fearing that without its help, AIG's collapse would cripple financial markets in the U.S. and around the world.

Shares of AIG slipped 2 cents to $1.54 in morning trading Wednesday. The stock has traded in a 52-week range of 33 cents to $36.77.



by the associated press

Improvements at AIG ?

The government-installed head of AIG told Congress on Wednesday the insurance giant is making progress toward repaying U.S. taxpayers by selling many of its foreign assets, but lawmakers questioned the plan and demanded details. American International Group Inc. Chief Executive Edward Liddy said the company has reduced, but not eliminated, the risk its failure could pose to the global economy despite getting more than $180 billion in federal bailout aid.








wire reports

AIG , focuses investigation on employees

Federal investigators are focusing their attention on three employees at American International Group Inc's financial products unit amid a probe into derivatives contracts that nearly destroyed the insurance giant, according to a report in The Wall Street Journal.

In a statement, AIG said it is aware of ongoing investigations by the Department of Justice and Securities and Exchange Commission tied to the valuation of derivatives contracts and related disclosures.

AIG noted it is cooperating with the investigation, but added it is not "aware of any fraud or malfeasance in connection with the underwriting and creation" of the derivatives contracts.

The investigation is focused on possible ways the three executives might have misled AIG's auditors and investors about the value of derivatives products AIG sold, according to the report citing anonymous sources.

In September, AIG was undone not by its traditional insurance operations, but its financial products business which underwrote risky credit derivatives contracts known as credit default swaps.

The swaps are essentially insurance contracts protecting an investor against default on an underlying investment, such as mortgage-backed securities.

Rising defaults amid the underlying investments led to worries that AIG would not be able to cover all the outstanding swaps contracts and the effects would touch of a new, even more intense period of the credit crisis.

On the brink of collapse amid the mushrooming credit crisis and amid fears that AIG could not cover all its potential obligations, the government provided AIG with an $US85 billion ($A119.9 billion) loan in September.

As market conditions worsened and losses piled up at the insurer, the government has revised and expanded its loan package to AIG multiple times.

The package of loans now totals nearly $US180 billion ($A253.91 billion) after being expanded in March when New York-based AIG reported a fourth-quarter loss of $US61.7 billion ($A87.04 billion), the largest ever quarterly corporate loss in US history.

As part of the loan package, the government has also taken a roughly 80 per cent stake in the insurance giant.

A spokesman for the SEC declined to comment. The Justice Department said it would neither confirm nor deny any investigation related to AIG.

Shares of AIG fell 1 cent to $1.39 in morning trading.

by the associated press

Banks lose $ 9.2 Billion in Derivaties Trading

Commercial banks lost $ 9.20 billion trading derivatives during the fourth quarter as the credit crisis intensified, according to a report released Friday by the office of the Comptroller of the Currency. Losses mounted as commerical banks had to take additional write downs on the value of investments they held, offsetting gains from actual trades.

The collapse of Lehman Brothers Holdings Inc. and the near failure of American International Group Inc. in September touched off one of the worst parts of the credit crisis, which carried over onto the final three months of the year.

Credit markets froze up, further pressuring the value of many types of investments.Derivatives contracts include interest rate and foreign exchange contracts as well as credit default swaps- a product that is essentially a bet against the performance of other types of investments. Credit default swaps have been at the heart of the credit crisis and a main reason for problems at Lehman and AIG.

The total value of derivatives at commerical banks jumped 14% to $200.4 trillion as financial firms changed their operating status to commerical banks after the collapse of Lehman in an effort to stay in business.

Among those changing their status were invstment banking giants Goldman Sachs Group Inc. and Morgan Stanley.

by the Associated Press .

Lawsuit against AIG , Demands Executives Return Bonues , Perks

A lawsuit filed on behalf of shareholders of AIG , is demanding company executives return millions of dollars in bonuses , dividends and other perks .

The lawsuit , which seeks class-action status , seeks unspecified damages , as well as the removal of AIG's top brass . It claims shareholders have lost $200 billion because of AIG's gross mismanagement and corporate waste over the past 8 and half years .

Freedom Watch , an organization that advocates for ethics in government , filed the lawsuit Thursday in U.S. District Court in Los Angeles .

Among the defendants named in the lawsuit are former Cheif Executives Maurice Greenberge , Martin Sullivan , and Robert Willumstad , as well as current CEO Edward Liddy .

An AIG spokwsman said Friday the company had no comment . The defendants " have sseriously undermined and damaged AIG's finacial health and valuable past reputation by systematically causing and/or permitting the company to engage in a litany of highly risky , detrimental and reckless business dealings " the lawsuit states .

The company also gave misleading and false assessments when it reported earnings in 2006 and 2007 , according to the lawsuit .

Continuing to play a dividend and even raising it at one point in thr mid 2007 shows the defendents were either tryng to misrepresent the financial stability of the company or derelict in their management and oversight , the lawsuit states .

Under the Skin ,

The filing follows the recent revelation that AIG received that AIG employees got 165 million in bonuses after AIG received 182.5 billion in government aid .

The bonuses were given to employees of the finnacial products divinacial products divison , aglobal unit that issued derivatives called credit default swaps, which drove AIG almost to collapse last year .

The government intervened to privide support for AIG because of fears that a collapse of New York Based company would trigger hundreds of billions of dollars in losses at financial institutions world wide , futher crippling the already battered credit markets.

Larry Klayman , chairman and general counsel of Freedom Watch , said the problems at AIG have " gotten under the skin of the American People " .

" A lot of information has come to light " he said . " It's an issue the American People want dealt with right now " .

FED Approves $900 Million Loan to AIG Aircraft

FED Approves $900 Million Loan to AIG Aircraft Leasing Subsidiary, The New York Federal Reserve has signed off an American International Group Inc.'s latest cash infusion for its aircraft lesing unit, a lifeline aimed at keeping it in business until it can be sold.
International Lease Finance Corp., one of the world's largest buyers of airlines, had warned that a failure to come up with new loans from AIG or someone could threaten its survival. AIG had already loaned $800 million to the unit to cover its March spending. Thursday, Chief Financial Officer Alan Lund told the Associated Press that another $900 million AIG loan for April was approved late Wednesday by the New York Federal Reserve.
The money will be recieved Monday, Lund said IFC has $600 million in debt that will mature two days lateer. ILFC said in filing that AIG will continue to offer such loans until March 2010 or until the unit is sold, which ever comes first. ILFC leases its 95 commerical jets- one of the world's largest fleets to airlines.
by The Associated Press
Posted by Mike D Lunsford at 10:18 PM 0 comments

Congress and Senate Taxing AIG

The House Financial Services commitee on Thursday adopted a milder alternative to a bill passed last week that would have taxed away 90 % of employee onuses from companies getting federal bailout money. The new legislation would let bailed-out companies pay bonuses as long as the government determines the compensation is not "unreasonable or excessive". Just what is unreasonable or excessive would be determined by financial regulators and the Treasury Department

The Senate, meanwhile, has put on hold a bill that would tax away about 70 % of the employee bonuses at AIG and the other companies getting more thatn $100 million in bailout money.

by the associated press

Two of AIG Managers in Europe Resign Amid Retention Bonus Dispute

Two of the AIG's top managers in Paris , have resigned , just days after agreeing to return the controversial retentiob bonuses . The news of more disension at AIG comes a day after Jake DeSantis, an executive in insurer's financial products division, publicly resigned in an Op-Ed column in the New York Times.

DeSantis said he plans to donate his bonus-742,000 after taxes- to charity. AIG said Mauro Gabriel, president and chief executive of Paris-based Banque AIG, and Jim Shephard, deputy chief executive, resigned from their roles March 20. The men "resigned from their roles given shared concerns regarding their ability to conduct business in the current hostile encironment toward Banque AIG and AIG Financial Product employees generally," AIG spokeswoman Christina Pretto said in an email to The Associated Press. AIG said both men have agreed to stay for a transition period, although for how long was not immediately known.

Status unchanged, Pretto's email came in response to a Wall Street Journal story that saud the resignations of the Paris employees could spark defaults on 234 billion of derivative transactions unless replacemennts for the two executives are found to the Wall Street Journal. Giving their commentment we believe the status of the Banque AIG drivative books will remain ungaged and good standing Pretto said.

According to the Journal report, if AIG fails to find replacements for Gabriel and Shephard acceptable to French regulators, the regulators can appoint their own disignee to manage the blank. Such an outcome could trigger defaults under the blank's derivative contracts since it would represent a chage in control.

A New Threat, A default could set off a chain reaction costing financial firms, including European banks that did busiess with AIG, billions of dollars- similar to what the U.S. govrnment was trying to prevent when bailing out the giant insurer. New York- based AIG has been heavily criticized by government officials and the public after it awarded $165 million in bonuses earlier this month.

The office of New York Attorney General Andrew Cuomo has also been investigating the retention bonuses, or payments designed to keep valued employees from quitting. The bonuses were given to employees of the financial products division, a global unit that issued derivatives called credit default swaps, which drove AIG almost to collapse last year.

by the associated press

Subpoenas sent to AIG ?

Subpoenas sent to AIG ?

New York state's top legal officer will issue subpoenas Thursday to American International Group Inc over credit default swaps (CDS) contracts, a source familiar with the matter said.

Andrew Cuomo's office has been pressing AIG , over $165 million paid in retention bonuses to executives . After their 180 billion dollar bailout from us the tax payers .

" The Wall Street Journal reported on its website that Cuomo is subpoenaing the information as part of an effort to assess AIG's claims the firm needed the expertise of employees to unwind certain contracts."

Now , the media has been reporting of the disaproval over the bonuses to the executives . AIG could have stayed out of these hateful headings from the media . And the angry emails from the tax payers . If AIG would have not handed out the 165 million in bonues to their executives .

Well , it is a mess now . For AIG sake I hope they hand over all the 165 million to the government .

Numbers could the Key , for Investing

Numbers could be the key , for Investing .

AIG , was going down customers all around the world , such as Japan . Did everything they could to pull their money out of AIG .

Should have they did these ?

AIG , did make poor investments , with their capiotal . However , AIG did have sound subsidiaries . Within policies to pay their obligations .

AIG's life insurance policy holders , are safe . Or atleast they should be .

Says Peter Gallanis , the president of National Organizations of Life and Health INS .

Only 100 life INS Companies , has went out of business in the last 40 years . After bankruptcy , state regulators move policies over , to another INS Company . With little to no changes in the policy .

Backing Life Insurers guaranty associations , which benefit limits vary by the state . For the most part are cap off at 300,000 dollors . or withdraw about 100,000 dollors . The investment pools together with annuity holders , and not creditors . Not to say the insurer . Their is power in numbers . The amount of anuityholders , in a company such as AIG .

However , before investing in a life insurance . Do research make sure they have a strong spreed sheet . To check out more information on Insurers .

AIG , will return some of the 165 Million Bonuses

AIG , will return some of the 165 Million in Bonuses .

The total will be about 30 million . From about 15 of the AIG employees . Now , I will say that is the right and correct thing to do . However , they are 135 million short !!!!!!

To give back to the American Public .

For paying for their bailout .

AIG Cheif Executive Eward Libby, told Congress last week that a few of the employees will give their money back . Well , I guess they do have some shame after all .

AIG , was handed 170 billion , to save their Company .

And then they in return thought that they needed their bonuses . What was Libby thinking ?

Edward Libby , is lucky that Congress did not ask him to step down from AIG .

Now , if the rest of the AIG execs , have any brains at all , they would turn down the bonuses . And send it to Congress , with a note saying am sorry . I had a Brain freeze , and did not know what we was doing .

Well , we own the Company now , and I think we should be like Donald Trump and say your FIRED !!!!!!! If they keep the rest bonuses money .

AIG , has bigger problems , if they do not send the money back . Obama and Congress , is working on a Tax plan , to get the 165 million .

I do not think that , the IRS and Taxes . Should be used as a weapon .

AIG , Edward Libby , just give the money back . Save yourself . And your company . Fix AIG , and repay Congress . So the American people don't have to watch this play out in court .

AIG , Do you have any SHAME ?

AIG , Do you have any SHAME ?

To give out $165 million in bonuses .

For what ? For getting a bailout , from the Government ?

People who ran the AIG in the ground , should be fired .Not be given millions in bonuses .

The tax payers kept AIG alive . Not the men and wemen that screwed up their company . Yes , Congress and President , needed to save AIG .

However , to hand out 165 million in bonues , is a crime . To our Country . We the People , should not be giving any more funds to AIG .

I am not saying that the government , should tax them . And get the 165 million back . That is not the answer . The United States , is still a free country .

The right thing for AIG , to do . And give the money back to the American People . That , would be the correct thing to do .

Have some shame , you have your jobs . That should be enough , not a 165 million bonues , for the same heads that , begged for the Government to bail their Company .

The sad thing is , that the country cannot have AIG , go under .

Yet , do not treat the country , that bailed you out . Like a Credit Card , that you don't have any plans paying back .