AIG

[Rox]

AIG ratings slashed as crisis talks continue ...
At 4.76, will it go or will it be rescued.

I think it will go with only the subsidiary companies holding off....
Roll on 1pm...

Views?

[plasticpig]

I agree. I dont think the yanks have the political will to save it. Its downfall will give enough voters pain so they can justify the next intervention.

[james_tigerwoods]

Hmm - seems like these are beginning to touch everyone's life (fnar fnar) - My pension's with AIG....

[Thudd]

Funny, i've been feeling a lot less smug since I remembered I have a mortgage and pension and house. And job (for now)

[Wacky Racer]

New shirt sponsers for next season??

[Rox]

http://finance.google.co.uk/finance?client=ob&...

Pre-Market: 3.00 -4.05 (-57.45%) - Sep 16, 7:53AM EDT

Trading in NY starts soon... could be interesting.

[james_tigerwoods]

Chapter 11 anyone?

[tricky69]

If it does go under it will make Lehman and Bear Stearns look like a drop in the ocean.... AIG insures a great deal of the credit default swaps that every bank has and almost all work with....

it will be game over

[james_tigerwoods]

What will be the overall implication of it going under?

And will it realign the world markets to what they should be, or are we looking at some serious worldwide problems?

[Pupp]

So what's the critical level?

[tricky69]

james_tigerwoods said:

What will be the overall implication of it going under?

And will it realign the world markets to what they should be, or are we looking at some serious worldwide problems?

Basically AIG insure a lot of the Credit default swaps that have caused huge problems for the large banks... If AIG goes under it will drag a lot of other banks with them, some houshold names in the UK.

In a nut shell i don't know any major bank that does not have exposure to AIG

AIG = 154,000 staff and 74million customers
Lehman = 23,000 staff and >6 million customers

Edited by tricky69 on Tuesday 16th September 13:21

[Swilly]

Am i right in thinking that CDS underpin a lot of deals i.e. provide insurance against a given event for example that would otherwise reduce the value or return on that deal !?

And that CDS are themselves a tradeable instrument !?

And that if these CDS become worthless i.e. AIG as a CDS seller goes down, then suddenly a lot of the underpinnings, and guarantees etc just disappear !!

[james_tigerwoods]

tricky69 said:

james_tigerwoods said:

What will be the overall implication of it going under?

And will it realign the world markets to what they should be, or are we looking at some serious worldwide problems?

Basically AIG insure a lot of the Credit default swaps that have caused huge problems for the large banks... If AIG goes under it will drag a lot of other banks with them, some houshold names in the UK.

In a nut shell i don't know any major bank that does not have exposure to AIG

I'm sorry, I don't fully understand (I'm in IT so unless you throw in a Microsoft-ism, I'm stumped)... So if AIG goes under, they only offer security for the loans, not the loans themselves?

[tricky69]

james_tigerwoods said:

tricky69 said:

james_tigerwoods said:

What will be the overall implication of it going under?

And will it realign the world markets to what they should be, or are we looking at some serious worldwide problems?

Basically AIG insure a lot of the Credit default swaps that have caused huge problems for the large banks... If AIG goes under it will drag a lot of other banks with them, some houshold names in the UK.

In a nut shell i don't know any major bank that does not have exposure to AIG

I'm sorry, I don't fully understand (I'm in IT so unless you throw in a Microsoft-ism, I'm stumped)... So if AIG goes under, they only offer security for the loans, not the loans themselves?

Simply put the world of banking is changeing, this is a earthquake style shift. If AIG goes under and then potentially drags the likes of RBS, HAlifax and barclays with it then peoples ability to get mortgages/remortagae will stop completely. Even small loans will be few and far between.. as a result people will have to start paying for things...

I wonder how many people have the ability to pay their whole mortgage back tomorrow ?

[tricky69]

2.44 now

[Scuff_]

james_tigerwoods said:

tricky69 said:

james_tigerwoods said:

What will be the overall implication of it going under?

And will it realign the world markets to what they should be, or are we looking at some serious worldwide problems?

Basically AIG insure a lot of the Credit default swaps that have caused huge problems for the large banks... If AIG goes under it will drag a lot of other banks with them, some houshold names in the UK.

In a nut shell i don't know any major bank that does not have exposure to AIG

I'm sorry, I don't fully understand (I'm in IT so unless you throw in a Microsoft-ism, I'm stumped)... So if AIG goes under, they only offer security for the loans, not the loans themselves?

Pretty Much, AIG underwrite Debt insurance (CDS).
So if a company goes under or suffers a credit event and has issued a bond, the holder of the bond if they have bought a CDS can claim their money back from AIG.

As a lot of 'Credit events' have occured reciently, AIG are suffering badly and this will have a knock on effect.

CDS's can be traded seperatly, your almost willing the company you hold it againsed to become more of a Risk, i.e you buy at 100, the company becomes more unstable and so the cost of the CDS goes up, your ££££'s in.

Edited by Scuff_ on Tuesday 16th September 14:17

[Marf]

dropped 60% in the first minute of trading, currently at $1.89

http://finance.google.co.uk/finance?client=ob&...

[Rox]

Stable at 2.4/5
Looks like that this $20bn lifeline yesterday didnt help - apart from dragging all the subsidiary companys down with it!!

[Fittster]

So how many billions will the Fed need to find them?

[turbobloke]

Ans what about the UK arm as a separate entity? Does that offer any additional safety for UK banks or is the parent enough to cause the domino effect?