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AIG Conference Call and Video's

Along with opinion posts. Earnings and Conference Call Monday Morning Conference Call to Broadcast Live on Internet at 8:30 A.M. EST Monday, November 10, 2008

NEW YORK--Nov. 7, 2008--American International Group, Inc. (AIG) will report its third quarter 2008 results at 6:00 a.m. EST on Monday, November 10, 2008. AIG's earnings release and financial supplement will be available in the Investor Information section of www.aigcorporate.com following the filing of AIG's Form 10-Q for the period ended September 30, 2008.

AIG Chairman and Chief Executive Officer Edward M. Liddy will host a conference call, broadcast live over the Internet, on Monday, November 10, 2008 at 8:30 a.m. EST to discuss AIG's third quarter results.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=33439350

Video's
http://www.cnbc.com/id/15840232?play=1&video=922637739
http://www.cnbc.com/id/15840232?play=1&video=922629459

Posts from another Board
Post 1
I've seen a few posts from some doom and gloomers over the last few hours that are light on understanding, while at the same using random cherry-picked facts to support a negative outcome. While none of us can be completely sure of what will happen, here is something to keep in mind based upon what early reports have said, as well as an overview of an important point not mentioned enough on this board:

The huge loss, which has been expected, is -.62 per share. This is not new news. ER should not differ radically from those projections unless there are big write-downs, but based upon news reports from Reuters (see some of my previous posts) and others that is not the case. That also doesn't fit with AIG's behavior so far: they have already paid down $2 billion on the loan. So it's really important for me to state unequivocally that the negotiation with the Fed has nothing to do with their expected losses, it has everything to do with alleviating onerous and hastily created terms in the original AIG deal, terms that are far harsher than what banks are getting under TARP.

But here's a very key point. Most of the money they've gotten has not been spent, it's been used as collateral. In other words, they are using it to reserve against potential bad debt. They still have the money! (This very important point hasn't been mentioned much on this board, but Hank Greenberg mentioned the collateral issue yesterday on CNBC.) Why is this important? Early reports are that the new deal will not only have more favorable rates over a longer period of time, akin to TARP, but will also ALLOW AIG TO SHED ITSELF OF SOME TOXIC DEBT, which would be HUGE for the stock price. Why? Because, if you no longer have that bad debt, then you no longer have to reserve (or collateralize) for it. That means that any newly freed-up money AIG took from the Fed could be paid back very quickly. This is akin to borrowing money from your parents because you think your car engine is about to blow, then somebody takes the car off your hands before you ever have to get it fixed. You can pay dad back pretty quickly cuz you never used the money.

Remember, as Greenberg and others have stated much lately, AIG's main problem is liquidity, not solvency. This is a solid going concern that just doesn't have enough cash around to reserve for their potential bad debt after the sub-prime pinch. Eliminate the debt that makes you need the cash, then you eliminate the liquidity problem.

Post 2
My take on AIG moving CC before Opening Bell 8-Nov-08 09:14 am
AIG is expected to lose big money this quarter,so CC was set up after the closing Monday .AIG was still negotiating with the Feds to do the deal on Friday . The deal must have been done. The Board is going to meet Sunday ,bless the deal and will announce it early Monday morning.
The Present deal was taken when Bush Administration thought the market is going to have a melt down. Bush was appearing on TV everyday to calm the crowd. Now the picture has become little more clear Paulson and the Administration can finally think with their heads than raw emotions.

AIG in talks with Fed over new bail-out

By Francesco Guerrera in New York

Published: November 8 2008 00:36 | Last updated: November 8 2008 00:36

AIG is asking the US government for a new bail-out less than two months after the Federal Reserve came to the rescue of the stricken insurer with an $85bn loan, according to people close to the situation.

AIG’s executives were on Friday night locked in negotiations with the authorities over a plan that could involve a debt-for-equity swap and the government’s purchase of troubled mortgage-backed securities from the insurer.

People close to the talks said the discussions were on-going and might still collapse, but added that AIG was pressing for a decision before it reports third-quarter results on Monday.

AIG’s board is due to meet on Sunday to approve the results and discuss any new government plan, they added.

The moves come amid growing fears AIG might soon use up the $85bn cash infusion it received from the Fed in September, as well as an additional $37.5bn loan aimed at stemming a cash drain from the insurer’s securities lending unit.

AIG has drawn down more than $81bn of the combined $122.5bn facility. The company’s efforts to begin repaying it before the 2010 deadline have been hampered by its difficulties in selling assets amid the global financial turmoil.

AIG executives have complained to government officials that the interest rate on the initial loan – 8.5 per cent over the London Interbank Borrowing Rate – is crippling the company.

They compared the loan’s terms with the 5 per cent interest rate paid by the banks that recently sold preferred shares to the government.

One of AIG’s proposals to the Fed is to swap the loan, which gave the authorities an 80 per cent stake in the company, for preferred shares or a mixture of debt and equity.

Such a structure would reduce the interest rate to be paid by AIG and possibly the overall amount it has to repay. An extension in the term of the loan from the current two years to five years is also possible, according to people close to the situation.

The renegotiation of the loan could be accompanied by the government’s purchase of billions of dollars in mortgage-backed securities whose steep fall in value has been draining AIG cash reserves.

AIG is also proposing the government buy the bonds underlying its troubled portfolio of credit default swaps in exchange for the roughly $30bn in collateral the company holds against the assets.

Losses on the mortgage-backed assets, which were acquired by AIG with the proceeds of its securities lending programme, and the CDSs caused the company’s collapse.

Since the government rescue, they have continued to haunt AIG, which is required to put up extra capital every time the value of these assets falls. AIG and the Fed declined to comment