So who's up to explaining what's the deal with AIG? nt.

[Phoebe Loosinhouse]

[grasswire]

1. all I know is that Lewis said all institutions have exposure...

...on that front. Doesn't sound good, considering that AIG has lost half its value today.

[Barack_America]

2. Screwn.

Begging for "their share" of the corporate welfare. Pouting and pointing at Bear Stearns and Fannie/Freddie, saying, "But THEY got one!".

That's my take, anyhow.

[TomClash]

3. There is no deal yet nt

[Nite Owl]

4. Governor Patterson is

holding a news conference about AIG at noon. It's going to be on Bloomberg don't know where else.

[me b zola]

5. What I need to know is

if someone has $$ invested through AIG, is it going to be there or is it lost?

[Stinky The Clown]

6. I **think** AIG insures people like Lehmen Bros against losses

I also think they insured Chrysler (and other automakers) against losses from decreased values of off-lease cars, allowing for the bargain basement lease prices and explaining why Chrysler no longer leases (AIG told them they won't renew the policy).

***I think***

I'm not certain.

[high density]

7. AIG wants to raise funds so that it can keep its insurers rating high

Everybody rolled their eyes at that, so now AIG wants the Fed to make an unprecedented move to lend them money in the meantime.

"Rating downgrades could force AIG to post up to $14.5 billion more in collateral for credit default swaps that insured mortgage-linked derivatives, according to a regulatory filing last month.

Downgrades could also prove detrimental to AIG's insurance business, since policies often carry clauses that nullify a contract in the event of downgrades below a certain level."

http://www.reuters.com/article/newsOne/idUSN1440161120080915

AIG is trying to stop a snowball effect.

[Phoebe Loosinhouse]

9. Aha! Credit default swaps. I remember someone saying that would be the next big shoe to drop.

Thanks for the link.

[Phoebe Loosinhouse]

10. This DU thread comes up 5th when you google credit default swaps wiki!

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=103x351988

A thread from Joanne98 on April 12th. The thread is short but loaded with some good info.

[DaDeacon]

8. The quick and dirty ...

AIG wants as much cash on had as possible to make the "claim" that it won't go under.

[TreasonousBastard]

11. Well, they lost...

a bundle in mortgage securities, but that might not put them under. AIG is huge with solid assets and has its fingers in many financial pies. It's not as highly leveraged as the investment banks that are going down.

The insurance operations really shouldn't invest in that sort of thing so I'm not sure just which operation of theirs lost the money. and I don't remember all the details of the shenanigans Greenberg pulled to get him tossed or how they could relate to this.

At the moment, however, they want to shift assets between operations and allow profitable subsidiaries to lend money to the losing operations. Normally, insurance companies are not allowed to move assets or lend themselves money, but this time AIG is looking for dispensation and they seem to have it.