AIG facing liquidity crisis!

[Zeus]

Yes if u got cash, you can buy a bunch of very nice businesses from AIG.

Actually, buyers are already circling above AIG...

Meron mga local insurance companies interesado sa Philam... pero di pa alam kung binebenta ang Philam

I guess bargains mga yan. Buyer's market e.

Di pwede mag matigas ang AIG sa mataas na asking price.

Kelangan nya ng pera e.

Philam Pres. Jose Cuisia confirmed Philam is for sale:

AIG to divest stake in Philamlife

abs-cbnNEWS.com | 10/03/2008 9:29 PM
The American International Group (AIG) will sell its non-core assets to pay off a massive loan from the US government. Its Philippine subsidiary, the Philippine American Life Insurance Co. (Philamlife), has been identified for possible divestment along with some of Philamlife's affiliates.

"[AIG is] selling valuable assets including Philamlife," Philamlife president and CEO Jose L. Cuisia, Jr. Cuisia told ABS-CBN News in a phone patch.
Cuisia explained that "It's not something that [AIG] would have wanted to do, but because they have to pay this loan to the Federal Reserve that they are selling highly valuable assets around the world.
Cuisia stressed, however, that "AIG's divestment decision is not a reflection of their subsidiaries' business or historical performance."
AIG, once the world's largest insurer, accepted a federal bailout last month after losses in the financial products unit drove it to the brink of collapse.

AIG's chief executive officer Edward Liddy announced Friday that they will refocus on its core property and casualty insurance business.

Selling the life insurance operations would be a reversal for Liddy, who previously said that staying in that business was a priority.

Philamlife, the largest and most profitable insurance company and the undisputed market leader in the Philippines for over 60 years, is a crown jewel for AIG and will surely attract local and international interest.
Several groups, including the Yuchengco Group, have already expressed interest in acquiring Philamlife.
Despite an impending change in ownership, the company assured policy holders that it will still be able to fulfill its obligations to premium holders and investors.
In a statement, Cuisia said that "Philamlife remains to be a stable and strongly capitalized organization. Our policyowners and clients can be assured that their interests are protected because of the company's financial strength. A change of ownership will not in anyway diminish policy owners' benefits and security."

source: www.abs-cbnnews.com
Oct.03, 2008

[uls]

the Fed conditions are very very tough on AIG

sobra ipit ang AIG sa loan na yan

---

this is a managed bankruptcy.

AIG wasnt saved at all.

what's happening to AIG is forced liquidation.

[uls]

Now AIG will become a much smaller company...

having less businesses, earning less money.

world's largest insurer no more...

the brand is destroyed.

More downgrades:

NEW YORK, Oct 3 (Reuters) - Moody's Investors Service cut American International Group's debt ratings by one notch, citing the company's plans to sell assets to pay off debt, leaving the insurer with fewer businesses to rely on.

Standard & Poor's on Friday revised the outlook on its ratings of American International Group to "negative" from "developing," signaling that it is more likely to downgrade the company over the next two years

.

[Zeus]

Now AIG will become a much smaller company...

having less businesses, earning less money.

world's largest insurer no more...

the brand is destroyed.

More downgrades:







.

Sira na pangalan, tapos may balak pa ang Yuchenco group sa Philam, e di lalong sisira ang pangalan nila, kaya naiinis ang mga Pacific plan holders e.
Lumabas ng mga full page ads ang Philam ngayon sa mga dyaryo upang ikalma ang mga insurers at investors nila.

[tidus1203]

Soft landing nga for AIG. Maybe those old AIG cards will now become Bankard if the deal pushes through But I doubt if Yuchengco will buy it alone, kailangan merong consortium maybe even a foreigner.

[uls]

Ya, i also doubt if Yuchengco can buy Philam alone.

pati ung Philam Savings Bank for sale...

everything Philam ibebenta

[gearhead]

source: http://abcnews.go.com/Blotter/story?id=5973452&page=1

After Bailout, AIG Execs Head to California Resort
Rescued by Taxpayers, $440,000 for Retreat Including "Pedicures, Manicures"
By BRIAN ROSS and TOM SHINE

October 7, 2008—

Less than a week after the federal government committed $85 billion to bail out AIG, executives of the giant AIG insurance company headed for a week-long retreat at a luxury resort and spa, the St. Regis Resort in Monarch Beach, California, Congressional investigators revealed today.

"Rooms at this resort can cost over $1,000 a night," Congressman Henry Waxman (D-CA) said this morning as his committee continued its investigation of Wall Street and its CEOs.

AIG documents obtained by Waxman's investigators show the company paid more than $440,000 for the retreat, including nearly $200,000 for rooms, $150,000 for meals and $23,000 in spa charges.

"They're getting their pedicures and their manicures and the American people are paying for that," said Cong. Elijah Cummings (D-MD).

"This unbridled greed," said Cong. Mark Souder (R-IN), "it's an insensitivity to how people are spending our dollars."

Appearing before the committee, Martin Sullivan, the AIG CEO until June, said the company was overwhelmed by a "financial global tsunami," and that "no simple or single cause" was to blame.

"I am heartbroken at what has happened," Sullivan said.

Robert Willumstad, the CEO from June to September, 2008, maintained AIG was a victim of a "crisis in confidence" and an "unprecedented global catastrophe." "Through the first week of September we were confident AIG could weather the crisis," Willumstad testified. He said the federal government offered its $85 million bail out on the afternoon it prepared for bankruptcy. Willumstad said the Federal Reserve demanded he resign, and will turn down his AIG retirement package of several million dollars.

But Congressional investigators raised question of "mismanagement" and whether AIG executives sought to "cook the books" and hide negative information from outside auditors.

On Dec. 5, 2007, Waxman said, CEO Sullivan told investors, "We are confident in our marks and the reasonableness of our valuation methods."

Documents obtained by the committee show that one week earlier, auditors Pricewaterhouse Cooper had "raise their concerns with Mr. Sullivan&informing him that PWC believed that AIG could have a material weakness relating to the risk management of these areas."

In March, 2008, the Office of Thrift Supervision wrote AIG, "We are concerned that the corporate oversight of AIG Financial Products&lacks critical elements of independence, transparency, and granularity."

Asked about the letter by the committee, the SEC's former chief accountant, Lynn Turner, said the letter reflects "a serious problem from the top down of management, that can bring an organization down."

Former AIG CEO Sullivan said accounting rules required AIG to mark down the value of its holdings, even though it had no plans to sell them, the "mark to market" provision.

AIG had to sell at "fire sale prices," he told skeptical members of Congress. "Suddenly a company with a trillion dollars in assets" was in trouble, said Sullivan.

Waxman questioned both former CEOs about a former AIG auditor who claimed he had been blocked from reviewing the books of a London-based division that has since been blamed for a large share of the company's downfall.

Former CEO Willumstad, chairman of the AIG board at the time, said "I honestly don't remember" the concerns raised by the former auditor.

"I find that very disturbing," said Congressman Waxman.

Waxman also said there is evidence the two men changed the bonus schedule once the company began to post losses, so that executives under the "Senior Partners Plan" would continue to make multi-million dollar salaries.

"Mr. Sullivan and the other top executives should have had their bonuses slashed due to poor performance," said Waxman.

Sullivan said it was "substantially reduced" by the board in 2007 due to poor performance.

Sullivan was given a $15 million "golden parachute" payment after being replaced as CEO in June.

[uls]

hahaha

gotta relax after all that stress

[tidus1203]

Now lets see if they can cope up with the stress after they were grilled by the Congress.

[uls]

Pambayad utang lang yung $85B

AIG needs more money...

eto:

Oct. 8 (Bloomberg) -- The Federal Reserve will provide as much as $37.8 billion in additional liquidity to American International Group Inc.'s regulated insurance units after rescuing the company with an $85 billion loan last month.