Saving AIG

Wednesday, September 17, 2008

David Paterson, Governor of the State of New York, talks about the deal struck to rescue AIG from bankruptcy.


Governor David A. Paterson

Comments [27]

gary masour from nyc

congradulations to fellow Americans, we are now proud co-owners of the worlds largest insurance co. Please do pay your premiums on time!

Sep. 18 2008 10:52 AM
chris_52 from nyc

I realize that this comment is a little late but, regarding the notion that the CEO-types may still get their Golden parachute, what happened to the concept odf renegotiation? Upfront? I used to be in the insurance industry and we did this all the time. A CONDITION of the bail-out should be the negating of the Golden Parachute (not renegotiating -- negating). If they don't like it, go elsewhere. I mean really, how stupid are are we?

Sep. 17 2008 11:50 AM
jawbone from Parsippany, NJ

Lambert at yesterday asked: If the government is getting into nationalizing businesses, why don't we take over the health insurance companies while we're at it? While they're still solvent.

And, voila!, healthcare is nationalized! Problem solved. Then trim the profit part and the CEO/upper execs pay way down, and, hey, we're good. (Essentially, make them paper processing companies, with a decent revenue stream and and enough "profit" to pay their employees. Gee, sounds like a well-run government agency....)


Sep. 17 2008 11:47 AM
Craig from Astoria

If we are buying AIG, why don't we keep it?

It would make a wonderful cornerstone for National Healthcare.

John McCain is right. Private enterprize is currupt.

We need socialized insurance, and nobody except George Bush could ever have gotten it done ;)

Sep. 17 2008 11:39 AM
jawbone from Parsippany, NJ

Found the Allianz SE link at Moon of Alabama, which has commentary and anlysis from a primarily European viewpoint. Brings new perspective--and so much info not covered here in the US MCM (Mainstream Corporate Media).

Also covering the breakup of the ruling coalition in Ukraine--we may get a neutral, pro-Russian, or, the worst outcome, an authoritarian takeover by the current president, who will be losing his office due to the breakup. Partially due to ripples from the Georgian attack on Ossetia/Russian pushback, partially due to increasing tensions between the current prez and his PM, both original proponents of the Orange Revolution.

Interesting site.

Sep. 17 2008 10:52 AM
jawbone from Parsippany, NJ

"Sept. 17 (Bloomberg) -- Allianz SE, Europe's largest insurer, made an offer to invest in American International Group Inc. that was rejected by the U.S. insurer two days before it accepted a government takeover, said two people with knowledge of the bid.

Allianz teamed with J.C. Flowers & Co., the New York-based private equity firm run by J. Christopher Flowers, in an effort to help New York-based AIG stave off a cash crunch, according to the people who declined to be identified because the talks were private."

Anyone know anything about this? What is import? Did AIG feel it could do better with the Fed and BushCo?

Sep. 17 2008 10:45 AM
Dallas from NYC

Gov. Patterson, make the buy out CONTINGENT on the cancellation of contracts with Senior Management and their immediate dismissal.

Sep. 17 2008 10:45 AM
Mike from Bellport

Maybe the MTA should go bankrupt, then they could get that 85 billions! That's enough to cover pretty much all their new plans, isn't it? And a lot more.

Sep. 17 2008 10:44 AM
Mike from Bellport

You mean if AIG collapses, millions will be left without insurance? That's outrageous! I thought this was America!

Sep. 17 2008 10:42 AM
Nicole from NJ

The Fed completely needed to bailout AIG.. too many other facets of the economy would have been pulled down with them.

But how can Governor Paterson say that we would be better off if the federal gov't rather than individual states regulate insurers.
Why should anyone have any confidence in the federal gov't regulating them? They obviously don't do a very good job with what they are already in charge of.

Sep. 17 2008 10:42 AM
John Garcia from Manhattan

I understand that Wall St is a huge factor in our economy, but should the city and state rely so much on one sector. What can we do to diversify our local economy?

Sep. 17 2008 10:41 AM
Marco from Manhattan

Paterson is impressive...if he could only get rid of Silver.

Sep. 17 2008 10:40 AM
Chris from Long Island

Is the Gov. Patterson and the varoius levels of government going to give the same assistance to all the small companies that are barely holding their own because of the credit crunch inflicted on the very same firms they are bailing out.

I am for free markets and I say let them fail. Market effeciency would provide the solution in the long term.

The only reason all levels of government is doing this is because their budgets are too big and over committed.

Sep. 17 2008 10:40 AM
Ralph from Bowery

Who bundled AIG's debt and sold it as a profit???? And if it's costing NY so much, why aren't this AIG brokers being arrested RIGHT NOW!!!!

Sep. 17 2008 10:39 AM
Matt from Manhattan

"20% of NY revenue is with Wall St."

Can we lower our dependency on Wall St.? What's the other 80%? That doesn't sound nearly as daunting as it could be.

Sep. 17 2008 10:39 AM
Chris from Manhattan

Eric, Steve, Teresa,

Couldn't agree more. Ironic that the party of no "bailouts" for the poor, ill, children and elderly" is not averse to bailing out big companies who have been criminally negligent.

What a bunch of hypocrites!

Teresa, I heard that the former CEO of Allstate is taking over AIG.

Sep. 17 2008 10:36 AM
m fisher

i am interested in but haven't heard yet just how a mortgage such as a "no doc ARM Balloon" can qualify to be
securitized then batched with others and sold as a secured investment instrument in the market.

Sep. 17 2008 10:34 AM
Lorraine Lurie from Brooklyn

Last night on the Charlie Rose Show, the x CEO of AIG stated that AIG did not need a government bailout, that the X CEo had contacted AIG many times trying to offer his hand in stablizing AIG and AIG never returned any of his calls. The x-CEO claimed that he had sources of money that he could raise.

Charlie Rose made a comment that the show was taped by 7pm and that by 8pm, he had seen a rumor that the Feds were going to bail out AIG.
I also saw that announcement by 8:30 on the internet.

AIG made a bad investment in only one division:
the Financial Services Division. The X ceo said the rest of the company was doing well.
Why wasn't the Finacial Services Division sold, or spun off? Why can't the rest of the company bail itself out?

Why are some companies bailed out because they are large? What about the smaller companies, and the workers bailed out?

I am a little person, who was laid off from one job, and under employed in a low paying part time job. Why am I good enough to help the rich, but the rich cannot help me out.

Its a free market. Let AIG learn its lesson.

Gov Patterson caved in.

Sep. 17 2008 10:32 AM
Teresa DeZazzo from Long Island

Now which party is getting into socialization? The Republicans, that's who. And, who are they replacing the AIG CEO with? One of their own cronies, no doubt.

Sep. 17 2008 10:18 AM
Israel Martinez from Woodside, Queens

Why should AIG be required to honor obligations that are close to, if not fraudulent? How is AIG supposed to know these things? When are we going to hold the banking industry responsible for the damage they are inflicting on the economy? There have not been any meaningful attempts at overhauling regulation of the banking system.

Sep. 17 2008 10:18 AM
Madeline from Manhattan

For years, while Americans have focused on electoral politics in what they believed was a democracy, these corporate giants like AIG have been running the show and our lives. If we want to save our democracy, these behemoths must be reined in and regulated.

Sep. 17 2008 10:18 AM
Steve Mark from NYC

It's ironic that the capitalist view of noble investors ((read: Republican philosophy) is now so dependent on the federal government. What happened to strict construction?

Sep. 17 2008 10:17 AM
Prof. Robert L. Hodge, Jr., J.D. from Criminal Justice Dept.-Nassau Comm. College

Hello Brian. How are you?
Please ask my good professional buddy and fellow Hofstra Law School graduate Gov. David Paterson the following: because New York State regulates insurance (instead of the Feds), is there any possible potential liability to the State of New York because of the A.I.G. bailout help? Will the State of New York have any oversight responsibilities?
I believe, so far, that the help is a positive event, specifically for New York State A.I.G. workers, and New York State's economy. Especially if A.I.G. defaulted or went bankrupt today!
Thank you!
Prof. Robert L. Hodge, Jr., J.D.

Sep. 17 2008 10:16 AM
Eric from B'klyn

Will the Fed 'lifeline' to A.I.G. produce greater transparency? This transparency question is relevant to this capital meltdown across the board.

Sep. 17 2008 10:15 AM
O from Forest Hills

Governor Paterson,

Since the economy is in such distress, can you make universal health care for all NY state residents a reality?

I was laid off in 2006 and pay $600/month since then for my own health insurance plan. I make $16/hour, too much for Healthy NY but not enough for NYC to live and I am only hired as a temp. I have looked for 3 years and can't find permanent work.

What can you do for people like me to have health insurance and to make ends meet in this economy with rising energy prices and the cost of living?

Sep. 17 2008 10:11 AM
Robert from NYC

Maybe it's just time to not pay for AIG and let everyone feel the pain. It's time Americans grow up and find out just how the "open market" can and does lead to the kind of greed and sleaze like the recent Lehman Bros inter alia situations. And who walks away with the money? The Boards and CEOs who brought about the collapses. And who gets screwed? You and I get screwed and yet you (but not I) support the "open market" with the false hope that we too will profit. And if "we" do profit, how much of that profit do "we" get? Not really very much.
"Wake up America!"--Dennis Kucinich, Speech at the 2008 Democratic Convention, Colorado.

Sep. 17 2008 10:08 AM
michaelw from INWOOD

Why is it a good thing the US government is in charge of an insurance company?

Shouldn't we use this money to provide health care for all Americans?

What about the tax payer?

This is taxation without representation!

Sep. 17 2008 10:03 AM

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