Jump to content
LCVG

I work for AIG


Dave C
 Share

Recommended Posts

  • Replies 68
  • Created
  • Last Reply

Top Posters In This Topic

Glad you job seems safe for now Dave, but as a taxpayer I am not too fond of how we have to continue to go in debt to bail out companies that have done bad business. Did I read correctly that the head of AIG is getting 8 mil to walk away? I have an idea, fuck him, he's fired and gets nothing. Give the 8 mil to the people that he nearly fucked over.

 

Again Dave, I am glad your job appears to be safe for now. I never like seeing the worker bees having to lose their jobs over bad decisions of the morons in charge.

 

-Dean-

Link to comment
Share on other sites

Glad you job seems safe for now Dave, but as a taxpayer I am not too fond of how we have to continue to go in debt to bail out companies that have done bad business. Did I read correctly that the head of AIG is getting 8 mil to walk away? I have an idea, fuck him, he's fired and gets nothing. Give the 8 mil to the people that he nearly fucked over.

 

Again Dave, I am glad your job appears to be safe for now. I never like seeing the worker bees having to lose their jobs over bad decisions of the morons in charge.

 

-Dean-

 

I think he was entitled to about $54m but the gov't denied that. I didn't think he was going to get any at all. I wonder why they gave him $8m.

Link to comment
Share on other sites

I think he was entitled to about $54m but the gov't denied that. I didn't think he was going to get any at all. I wonder why they gave him $8m.

 

Glad you job seems safe for now Dave, but as a taxpayer I am not too fond of how we have to continue to go in debt to bail out companies that have done bad business. Did I read correctly that the head of AIG is getting 8 mil to walk away? I have an idea, fuck him, he's fired and gets nothing. Give the 8 mil to the people that he nearly fucked over.

Not trying to defend him but he was only the CEO for a few months. He actually did a lot of work that the new CEO can use to restore the company. He definitely should be paid but not nearly the 8M he's getting. Glad to see they at least clipped the strings on his golden parachute.

 

Unfortunate as it was, be very glad the Feds did step in. Most people have no idea the potential global economic impact. If this were a political/military incident, I'd put it on the level of the Cuban missile crisis. Global economies could crumble triggering all kinds of shortages and civil unrest. Chaos at an unprecedented scale. There is a reason why the feds have never done a deal like this with a corporation. Perhaps they never should have let a conglomerate gets so big in so many places.

 

As with all news, don't believe everything you hear and read from the media and political interests. They tend to over simplify things by using words like "greed" and "bailout". It is not a bailout; it is a 2-year $85B line of credit at 11%. This is actually a sweet deal for the taxpayers but I doubt the taxpayers will ever see a dime in their pocket. AIG will not need to tap into the whole amount either as they will get rid of their bleeding and non-core assets, and once it is paid back, AIG will retain full ownership. Shareholders however will never have their shares restored to prior full value. As it stands today, the devaluation of AIG stock has personally cost me about $60k. Thankfully, I'm diversified enough between my other investments and 401k.

 

The reasons all this occurred are quite complex and started about 10 years ago when AIG entered into bond default insurance for banking institutions a.k.a. credit default swaps (CDSs).

 

Who do I blame? I blame the government for deregulation and minimal regulation of financial institutions. I blame the mortgage sellers/banks for offering outrageous lending terms. I blame the rating agencies for falling asleep at the wheel by maintaining the ratings of companies that developed and dealt in these risky products to begin with. I blame the homeowners who jumped in with both feet without fully understanding the terms of their loan. But most of all, I blame the underwriters and risk takers that enabled the packaging and insurance for these loan terms/CDS's and the senior management that poorly monitored those derivative exposures with little due diligence.

 

I love this company. It has opened markets around the world and helped build infrasture for emerging nations. It has provided me with a great career for 11 years that allowed me to travel the world and support my family. It's just a shame that it was mismanaged.

 

The Good News: We have a new CEO who seems to be very good and up to the task at hand. I also recently found out that for the most part my job is safe as is my company pension if I wish to stay (I'm still keeping my options open to be on the safe side). Had we declared bankruptcy, I would have lost my pension. So for that my fellow taxpayers, I thank you for the loan and thanks again for the well wishes. Drinks are on me!!!

Edited by Dave C
Link to comment
Share on other sites

This all sounds like a big mess... They need to do away with golden parachutes it doesnt help matters like this.. your average person barely understands how companies this big could get into such crises, and seeing ceo's walking off with pocket fulls of cash while the rest of the company goes under is uhm. Disheartening.

Link to comment
Share on other sites

Government is bailing out Wall Street. Like Dave said, this is actually a good thing now that I have read more. According to a lot of people, the economy was on the brink of a global meltdown in a very short while. I have a feeling you will see lots of changes on how things are handled in business.

 

 

Dave,

 

Glad to hear things are going to be better. You are 100% right on where to throw the blame. We talk about the loan industry almost daily here at work. Hope your new CEO does work out for you guys.

 

-Dean-

Link to comment
Share on other sites

This article from 1999 proved to be very prophetic: http://query.nytimes.com/gst/fullpage.html?res=9C0DE7DB153EF933A0575AC0A96F958260

 

In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's.

 

''From the perspective of many people, including me, this is another thrift industry growing up around us,'' said Peter Wallison a resident fellow at the American Enterprise Institute. ''If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.''

 

Edit: More fun with history: http://query.nytimes.com/gst/fullpage.html?res=9E06E3D6123BF932A2575AC0A9659C8B63&sec=&spon=&pagewanted=print

 

Carlos.

Edited by Carlucci
Link to comment
Share on other sites

  • 3 weeks later...

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
 Share

  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...