AIG facing liquidity crisis!

[uls]

crisis of confidence yan e.

kahit alam natin hindi affected ang mga subsidiary, di mo maalis sa isip ng mga tao na may problema ang AIG.

AIG is a brand. it's a franchise.

People's perception of AIG is that it's a pillar of strength.

Now, people's perception of the brand name has changed drastically.

[uls]

WSJ
Kraft to Replace AIG in Dow

Kraft Foods Inc. will replace American International Group Inc. in the Dow Jones Industrial Average effective Monday, a further sign of the woes afflicting the insurance giant.

Kraft promoted

AIG demoted.

[tidus1203]

So AIG is no longer a blue chip. At least Down Jones is smart enough to remove AIG from their indeced before it goes bankrupt There has been never a time were a DJIA component went bankrupt while it was a part of the index.

[jeDi13]

U.S. government will never let AIG go bankrupt since it's the biggest American insurer. But even though AIG has been saved by fed, investors (and people in general) will lose trust to this financial institution. Kaya nga financial institution, they should be the ones displaying how to manage financials properly. In AIG's case, it's a mortal sin for fiancial institutions to be in a situation where they are in.

[uls]

the US govt didnt let AIG fail coz its failure would be catastrophic to the global financial system.

AIG sold billions of $$$ of credit-default swaps (bond default insurance)

the insurance adds value to the bonds.

the bonds are held by financial institutions all over the world.

If AIG fails, the bond insurance disappears, causing the value of those bonds to drop, triggering more asset writedowns.

Many financial institutions cannot afford another round of asset writedowns.

The US govt was saving the global financial system (which is already in trouble) from further trouble... not really saving AIG.

If AIG's effect wasnt so big, the US govt would have allowed it to fail.

---

Yes, AIG has managed to ruin its reputation.

that's mortal sin for a bank or insurer.

[uls]

Job stress...

SINGAPORE - The head of the Singapore unit of troubled insurance giant American International Group Inc. has resigned effective immediately, the country's central bank said Friday.

Mark O'Dell, general manager of AIA Singapore, has taken a leave of absence and Executive Vice President Kenneth Juneau will take over, said the bank, known as the Monetary Authority of Singapore.

AIA Singapore headquarters has been flooded this week with thousands of nervous policyholders seeking to find out the status of their policies or cash them out, even after the U.S. Federal Reserve pledged an $85 billion loan to prop up AIG.

[jeDi13]

ouch. nang-iwan sa ere. just imagine what the AIA employees would feel tsk tsk yan ba ang president?

[paolorenzo]

Ika nga... when the ship is sinking, the rats jump out first.

[CVT]

Ika nga... when the ship is sinking, the rats jump out first.

Question is,- is he a rich rat?....

6707:choir:

[Zeus]

Tsismis lang daw mga takeover talks sa Philam

Takeover talks on Philam ‘speculative,’ says CEO

By Doris Dumlao
Philippine Daily Inquirer
First Posted 05:32:00 09/27/2008


MANILA, Philippines—Talk of a sale of any of the Philippine assets of the American International Group Inc., including Philippine American Life and General Insurance Co. (Philamlife), or Philamlife president and chief executive officer Jose Cuisia Jr. leading a management buyout is purely speculative and baseless, Cuisia said Friday.
Cuisia was reacting to an item in the Biz Buzz column last Wednesday that said dealmakers had started knocking on his doors for a potential buyout as soon as news about the financial difficulties of AIG broke out in the United States.
The column also said Cuisia might be interested in orchestrating a management buyout of Philamlife if AIG decided to sell its Philippine assets.
Cuisia said Friday the article was “pure speculation and is without any basis.”
AIG recently got an $85-billion lifeline from the US government.
Philamlife has assured clients that it can meet its commitments to plan holders. Cuisia said in an earlier statement, “Philamlife is separately capitalized, has its own capital base, its own investment portfolio and these are principally in local marketable government securities and prime corporate bonds and a small amount of blue chip stocks.”
“And, of course, we’ve always had a very conservative investment strategy and that has paid off. We have no exposure to Lehman,” he added.
Lehman, the fourth-biggest investment bank in Wall Street, recently declared bankruptcy. Edited by INQUIRER.net