Thursday, October 02, 2008 1:13:10 AM
Buffet loves 3G
GE GS CEG
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another G is not so lucky
Omaha-based AIG may reveal reorganization earlier (Flush! Buffet's AIG goes down the toilet)
Date: 2008-09-13, 3:29PM CDT
Berkshire-Hathaway's AIG may reveal reorganization earlier
Buffet's failed insurance company is flushed down the drain to save the corrupt corporation
BLOOMBERG NEWS
September 13, 2008
Omaha-based Berkshire Hathaway's American International Group Inc., the largest U.S. insurer, may accelerate plans to raise capital or sell assets after its share price plunged 46 percent this week, said a person familiar with the company. Chief Executive Officer Robert Willumstad may announce the reorganization before his Sept. 25 deadline, said the person, who declined to be named because the New York-based insurer hasn't made an official statement.
AIG shares slumped and the cost of insuring its debt rose to a record Friday on concern that the company may be the next big U.S. financial firm after Lehman Brothers Holdings Inc. to run short of capital. Standard & Poor's said Friday it may downgrade AIG's credit ratings because the share declines may crimp the insurer's access to capital. AIG shares dropped $5.41, or 31 percent, to $12.14 Friday. The price of credit-default swaps, used as hedges against losses on bad debt, approached distressed levels and traded higher than those for Lehman, the securities firm that's fighting for survival.
AIG spokesman Joe Norton declined to comment on the reorganization plans. AIG may be able to raise $20 billion selling assets including its consumer finance, reinsurance and plane-leasing units, according to analysts at Citigroup Inc. The insurer raised $20.3 billion in May by selling debt and equity, diluting the holdings of long-time investors. "As distressed as they are, raising new capital could be extremely hard," said Tim Backshall, chief strategist at Credit Derivatives Research LLC in Walnut Creek, Calif.
http://omaha.craigslist.org/vnn/839523380.html
GE GS CEG
another G is not so lucky
Omaha-based AIG may reveal reorganization earlier (Flush! Buffet's AIG goes down the toilet)
Date: 2008-09-13, 3:29PM CDT
Berkshire-Hathaway's AIG may reveal reorganization earlier
Buffet's failed insurance company is flushed down the drain to save the corrupt corporation
BLOOMBERG NEWS
September 13, 2008
Omaha-based Berkshire Hathaway's American International Group Inc., the largest U.S. insurer, may accelerate plans to raise capital or sell assets after its share price plunged 46 percent this week, said a person familiar with the company. Chief Executive Officer Robert Willumstad may announce the reorganization before his Sept. 25 deadline, said the person, who declined to be named because the New York-based insurer hasn't made an official statement.
AIG shares slumped and the cost of insuring its debt rose to a record Friday on concern that the company may be the next big U.S. financial firm after Lehman Brothers Holdings Inc. to run short of capital. Standard & Poor's said Friday it may downgrade AIG's credit ratings because the share declines may crimp the insurer's access to capital. AIG shares dropped $5.41, or 31 percent, to $12.14 Friday. The price of credit-default swaps, used as hedges against losses on bad debt, approached distressed levels and traded higher than those for Lehman, the securities firm that's fighting for survival.
AIG spokesman Joe Norton declined to comment on the reorganization plans. AIG may be able to raise $20 billion selling assets including its consumer finance, reinsurance and plane-leasing units, according to analysts at Citigroup Inc. The insurer raised $20.3 billion in May by selling debt and equity, diluting the holdings of long-time investors. "As distressed as they are, raising new capital could be extremely hard," said Tim Backshall, chief strategist at Credit Derivatives Research LLC in Walnut Creek, Calif.
http://omaha.craigslist.org/vnn/839523380.html
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