If their main goal was stabilizing AIGFP, and that job is nearly complete, then if the value of
AIG as subsidiaries get sold appears to not support the preferred stock, the government might walk, and not throw good money after bad.
Not exact matches
I mean at worst,
AIG could have procured a secured loan to provide $ 3 billion, offering a valuable
subsidiary as collateral.
If
AIG did not have AIGFP, and no bailout from the US Government, the company
as a whole would have come under severe stress, and some of the life and mortgage
subsidiaries would have gone into insolvency, but the company
as a whole would probably have survived.
As you wind down
AIG Financial Products are you finding «deadweight losses» where the
subsidiary was fundamentally mishedged?
Hindsight is 20/20... there were many mortgages insured by
AIG before Greenberg left, and many mortgage bonds purchased by his life
subsidiaries as well.
As for
AIG, some of those promoting insurance products say that
AIG's life insurance
subsidiaries did not need a bailout in the crisis.
As part of the deal,
AIG has sold its 20 % stake in Ascot Underwriting and fully owned funding
subsidiary Ascot Corporate Name to CPPIB.
As a wholly owned
subsidiary of American International Group (or
AIG), this company has more than 150 years behind its offerings.