AIG Rec'd $170 billion in Bailout /Giving$165 million in bonuses

[Twila]

I am just wondering what AIG did with the billions in profits they've squeezed from people. As I said before if they can't keep a bit in case of raint days, then they shouldn't be able to rely on others to keep handing them money they haven't earned.

They've recorded a 60Billion dollar loss in the their last financial quarter (That's for only a 3 month period. That's HUGE)

 

[L Gilbert]

They've recorded a 60Billion dollar loss in the their last financial quarter (That's for only a 3 month period. That's HUGE)

So? I am still wondering what they did with all their profits.

 

[shadowshiv]

So? I am still wondering what they did with all their profits.

They probably haven't had any in quite some time.

 

[Said1]

The swaps market is gambling, REALLY bad bets. But who's debts were they insuring? How many corporations did they kill like vultures selling swaps against them, for whom?

 

[shadowshiv]

The swaps market is gambling, REALLY bad bets. But who's debts were they insuring? How many corporations did they kill like vultures selling swaps against them, for whom?

We may never know for sure. Quite a few I would imagine.8O

 

[Said1]

We may never know for sure. Quite a few I would imagine.8O

Probably GM and everyone else who received bailouts - but them of course. :lol:

Seriously though, that sort of speculation should never have been reintroduced.

 

[shadowshiv]

Seriously though, that sort of speculation should never have been reintroduced.

Isn't that what also caused the cost per barrel of oil to go up astronomically(and the price of gas along with it)?

 

[Twila]

So? I am still wondering what they did with all their profits.

In 2005 they'd overstated their profits. Since 2000 AIG has been rocked with nothing but financial problems. There have been no profits.
last 12 months their financials looked like this

Last 12 Months 5 Year Growth
Sales 11.1 Bil -32.5%
Income -99.7 Bil NA
Dividend Rate 0.00 11.84%
Dividend Yield 0.00% 1.00%


Debt/Equity Ratio 3.67
Gross Margin NA
Net Profit Margin -904.06%
Total Shares Outstanding 2.7 Bil

They don't have any profit according to their financials.
Market Capitalization 4.36 Bil
Earnings/Share -37.15

 

[L Gilbert]

Wonder why AIG even exists then.

 

[Said1]

Isn't that what also caused the cost per barrel of oil to go up astronomically(and the price of gas along with it)?

Futures and forwards aren't quite the same thing, but forwards are a bit riskier credit wise. Swaps are like a form of insurance on risky debts. If the debtor defaults (goes bankrupt etc) the owner of the swap stands to gain and the seller loses. They're written on asset backed securities like loans and mortgages among other things.

 

[Said1]

Twila, here's a good article on AIG and derivatives - where some f teh money went.

AIG saga shows dangers of credit default swaps

 

[L Gilbert]

Funny, I remember reading that the oil companies laid refinery workers off at the beginning of summer '08 claiming reduced demand, and consequently reducing the flow of fuel resulting in a higher demand and higher fuel prices while claiming "shortage".
RE: AIG, sure looks like mismanagement to me.

 

[Twila]

Wonder why AIG even exists then.

THAT is the question. It's a poorly run, badly managed money sucking pit of a company.

 

[shadowshiv]

Futures and forwards aren't quite the same thing, but forwards are a bit riskier credit wise. Swaps are like a form of insurance on risky debts. If the debtor defaults (goes bankrupt etc) the owner of the swap stands to gain and the seller loses. They're written on asset backed securities like loans and mortgages among other things.

Thanks for the explanation.:smile: I am glad I am not in that line of work.;-)

 

[shadowshiv]

THAT is the question. It's a poorly run, badly managed money sucking pit of a company.

Unfortunately they are not alone in that regards.

 

[Said1]

Thanks for the explanation.:smile: I am glad I am not in that line of work.;-)

Me too! At least I'd have my bonus! :roll:

 

[shadowshiv]

Me too! At least I'd have my bonus! :roll:

For now.;-)

 

[Cannuck]

I disagree. I don't think it is particularly ethical. Hence, I think AIG is just as culpable as the gov't.

What's unethical?

 

[Cannuck]

Depends on what you call obligations, if you hire a guy to paint your fence for $20 an hour and he spills the paint and walks away, do you still have an obligation?

Do you have evidence that these individuals didn't do what they were required to do in order to get these payments?

 

[Cannuck]

CTV.ca | U.S. House passes bill taxing AIG, bonuses

It will be interesting to see if anything comes of this. I'm no tax lawyer but I suspect the government can't retroactively change tax laws. Pablum for the masses in all likelihood.