AIG

Miserable-Fact-6668

Just got a notification about unusual call activity on AIG stock Getting GFC FLASHBACKS

betterbackitup

is Global Life blowing up (AIG style)?

20bucksis20bucks__

In 2005, the biggest companies by revenue in the US were: 1) Walmart 2) Exxon 3) GM 4) Ford 5) GE 6) Chevron 7) Conoco Philips 8) Citigroup 8) American Intl Group (AIG) 10) IBM Take a look at what would have happened if you bought these stocks, the kings of their respective industries. If you looked at their historical performance pre 2005, they smoked the general market. Now 20 years later, the broad market has gone up 4x higher than it was in 2005. You have a few winners in the group, but a handful are down 90% since then. Morale of the story: just because the companies you listed have had an insane run up recently, doesn’t mean it’ll keep happening.

Elise_1991

The really disastrous decision at the time was Henry Paulson's call to let Lehman fail. He said it was necessary to "calm the markets" Lmao. A bailout of Lehman would have cost $50 billion, maybe $60 billion. Instead they bailed out AIG and all the rest for over $700 trillion and doubled the US national debt in a matter of days. What's even crazier is that Paulson gambled with the same junk derivatives that Lehman did at Goldman before he went to the Treasury, and because he did that he had to sell his $350 million in options and didn't have to pay any taxes on it. 2008 is such a gigantic mess, and today they are still gambling with the same credit derivatives that are worth ten times the world's GDP every day! When this bubble bursts (and it obviously will one day) no one will know who owes whom on the books and no amount of taxpayer money will be enough. But so what, this is Wallstreetbets, everything is just one big gamble... Maybe not on such a large scale for most. Too bad there is no retail broker for credit default swaps. I would feel good if I owned some 5 year CDS on Boeing right now.

KingLouie167

well yea the banks are pretty much backed by nothing now because of the whole AIG situation. and it shows in alot of their liquidity with half of the big banks being sub 1.1

Bob_Wilkins

A bad semiconductor chipset shorted and blew the whole navigation system apart. My dinghy with no technology and a few of 2 (me and my gal), sail through just fine. I feel so sorry for Lloyds, AIG, and Mutual of Omaha…

Already-Price-Tin

GM, AIG, and Citi were bailed out. Their shareholders never recovered. The companies might be fine, but any pre-bailout shareholder was either left with nothing (GM) or 90+% losses (AIG, Citi) that they haven't recovered from in the 15 years since. In the meantime, the S&P 500 has tripled.

JustJohan49

I’ve seen this movie before. Puts on AIG

KeenStudent

When has the share price of a public listed company ever recovered post accounting fraud Less than 10 in recent history. AIG/WM/PBR to name a few. Even some of these name never fully recovered Luckin coffee being a chinese company makes a potential comeback even harder and riskier. No thanks

fkn_clownshoes

Is AIG doing goofy things with default swaps again

LongjumpingMap574

looking to short AIG, Swiss Re, Hannover Rück, Münchener Rück, Zurich Insurance Group haven't found the right tool yet might add BASF itself to the list the story is the resurgence of the PFAS issue and billions in possible open claims, have been following the topic for years but need to do more DD on the impact of possible claims since I kinda just wanna see those companies bleed

redditmodsRrussians

*AIG has left the chat….again*

WestTexasCrude

You and Buffet both. I realize that it is likely an unreasonable stance. But yes, I am anti- the whole sector. No insurance companies, fintech, big banks, regionals, etc. All those companies can go to zero overnight because of lies or liquidity. With an industrial, tech, communications, energy, retail... you name it, there are signs before the end. Financials can give you the real rug-pull. Ive thought about making exceptions for V, PYPL, AXP etc. Then I think back on BearStearns, WaMu, Wachovia, SVB, Conseco, AIG, etc. I also count a company as a financial when a company stops its main purpose and basically becomes a financial a la GE and ENRON.

Parking_Revenue5583

Who suffered from the collapse of bear sterns? EVERYONE. why did AIG ( a global corporation) get bailed out by America? Because everyone is connected.

DeltaRipper

AIG was too big to fail in 2008. It’s still sitting at a share price that is around 5% of what it was prior to the crash. Fin services =/= aircraft, but nonetheless, just because they won’t fail doesn’t mean they won’t be broke/indebted to the govt forever

SirGlass

In past cases where a company was deemed to big to fail and required a government bail out , share holders always got a big haircut The government does not just hand over billions of dollars and say "here you go", it rightly comes with strings or they take an ownership stake at the expense of existing share holders There are examples , GM, AIG, Citi. With boeing part of it is it also makes military stuff, EU has complained that the USA government sort of does a backdoor subsidies through the military contracts Sort of like the USA signs a 100 billion dollar contract for some fighter jet at an perhaps inflated price, well Boeing can basically use that money as subsity for its domestic jets

Already-Price-Tin

The business will survive. Whether that actually extends to today's shares having any value in the future is a completely separate question. GM got bailed out, and a condition of the bailout was that shareholders got wiped out. Literally down to zero. But not only did the company itself survive, but the existing union agreements, dealer franchise agreements, and the warranties of the cars themselves survived the bankruptcy. AIG got bailed out, and a condition of the bailout was that shareholders got diluted down to about 20% of the company, as the company was saddled with a bunch of new debt (and debt gets paid before equity). $1000 invested in AIG on January 1, 2007, would be worth $82, after taking about $38 in dividends. That's practically a 90% loss, over the course of 17 years. Too big to fail, sure. Not too big to suffer huge shareholder losses. Citi got bailed out as well. Too big to fail. A $1000 investment on January 1, 2007 would be worth $147 today, after $94 in dividends collected. That's roughly a 75% loss over the last 17 years. Boeing is in a unique situation. But so were all those examples above. If the company were to go into bankruptcy, we might see all sorts of stuff happen: spinoffs of certain parts of the business (including separation of military, space, and commercial aircraft), nationalization that dilutes or wipes out existing shareholders, etc.

WestmontOG07

This is actually a fair point, although, in relative terms a challenging comment to understand. Here is what I mean: Circle back to the 2009 financial crisis, the “losses” weren’t real for a majority of banks, however, when they “marked to market” the prices of the swaps they were holding on their balance sheet, they were significantly under water — thus the nearly $800 billion bailout we, the taxpayers, gave the big banks so the system didn’t fail. (AIG, who subsequently was the lead insurer on the swaps, ended up also getting bailed out). Now, circling back to SVB, you’re confusing bad management with the aforesaid comment I’ve made. Effectively, What SVB was doing was When the Federal Reserve hiked interest rates in 2022 to combat inflation, SVB's bond portfolio started to drop. It is important to note that SVB would have recovered its capital if they held those bonds until their maturity date (which is the point I’ve made in this thread via a comment back to someone else). Subsequently, SVB ended up playing the longer end of the curve, rates rose and, due to their bad management, they didn’t have short term hedges / liquidation vehicles in place. Word got out and there was a bank run. Their long treasuries positions didn’t bankrupt the bank. What bankrupted them was a lack of diversification of immediate liquid assets versus the long term treasuries they held, of which, had they cashed those bonds in, they would have had huge losses. Word got out, people pulled their money out and the rest is history. Long story short: buying bills, notes and bonds to maturity isn’t the problem as, again, if you, or a bank, holds to maturity you will get the promised amount of principle back plus the agreed to interest. What causes a problem is if you’re playing the long end of the curve and, by way of example, are a large institution with all of your eggs in one basket, then you can quickly become insolvent if market conditions change, like we saw when the fed took rates from, effectively, 0% to 5.5%.

J-LG

Lehman was not the only Investment Bank in the US, so it's not even close to the Boeing situation. Also the effects of Lehman forced Hank Paulson, Geithner and Bernanke to actually do something and come up with the TAARP. It would've been an absolute calamity if MS, AIG and Citi went down. Lehman probably should've been saved too, although it was a more difficult situation cause there was no willing buyer (well Barclays wanted it but the UK gov said no).

JoshuaByer

I also want [AIG.CN](https://AIG.CN), EVA was a total bust not only did it not go up it went down.

sat5ui_no_hadou

Open AI’s contract with Microsoft is dependent upon giving Microsoft non true AIG models, thus Open AI has a monetary incentive not to pursue real AIG.

lazy_cricket_

I have about $20K in a 403(b) managed by AIG from a previous employer. Can I/should I roll this over into my Vanguard Roth (about $50K in VFFVX)? Or to a new Vanguard Traditional? I'll never make anywhere near enough to think about backdoor Roth stuff, and have contributed to my Roth limit every year since I made it (about 7 years ago, I'm 30).

JPete4985

I have no idea but this post was three years ago. GE is up 400%. I dumped AMC last year and made 10x on a 30k investment… not a bad pay day! CCL I also sold at the 2 year mark at 2.5x roughly. AIG I’m holding and currently at 2x. BAC 1.5x and holding. NOK I sold at one year 2x payout. XLE and XLF have doubled and I’m holding. In 3-4 years with this strategy I posted I turned 100k into 780k. They can down vote all they like… I’m laughing on the way to the bank!

gnocchicotti

Looking at the top companies of [30 years ago](https://www.finhacker.cz/top-20-sp-500-companies-by-market-cap/#1994), I'm thinking Procter&Gamble has a good chance of being near the top. If not that, something else consumer staples or pharma. The only bank on that last list was AIG...

CNBCViewer92

It depends on how much liquid I had at the time, but my instincts would be: JPM BRK.B GOOG MRK AIG PSA CUBE PG UNH X

totes__

AIG

StoneyBalogna7

There were some beauties on the circa-2008 AIG earnings calls…

mc_snails

Companies i am watching: USA: $AAIRF CAD: $WIFI.CN / USA: $AIGFF CAD: $AIG.CN ​ While WIFI has proven its a track star AIG will soon prove it has what it takes as well

Frozen_Shades

~~LLY COST SMCI NVDA MSFT~~ MCD ~~AMZN~~ WMT ~~AIG~~ HOOD  HOOD

Frozen_Shades

I agree with most everything you are saying, I just don't like all the competition from the other apps. Seemed to underperform after the Super Bowl so I figured move into AIG which has been disappointing but they kick a dividend back.

EatinTendieS

I’ll take some HOOD all day, made some money on them last week. Sitting on plenty of DKNG under 17.75. People still made money on AIG and now that you mentioned it

Frozen_Shades

There are like 4 other sports betting apps to use and they all have to spend large amounts on advertising and pay out to winners. Casinos go bust in LA all over the USA all the time and have more games than the sports books. Rather just hold some AIG or HOOD.

Frozen_Shades

SMCI LLY COST NVDA MSFT MCD AMZN WMT AIG HOOD 

tylermm03

I’m a regard, I thought they were going by GAAP EPS on those estimates. I hope to fucking god I’m wrong and that the market doesn’t throw a hissy fit about the acquisition and is happy about raised guidance. I’ve been getting fucked in the pokies all this past week except for AIG, I’m only down 10% overall if this falls through but I’ll be so happy if this pumps tomorrow.

Frozen_Shades

SMCI LLY COST NVDA MSFT MCD AMZN WMT AIG HOOG  Such a master of surprise 

mc_snails

next one is wildfire mitigation.... $AIG.CN

tylermm03

Wow you got killed on those, I guess that makes two of us breaking even one way or another. I had an AIG call that I made $125 on yesterday but lost most of it on my CROX put. What’s your next move?

Frozen_Shades

Added AIG to long port and bought some calls! LFG

Frozen_Shades

Long port addition AIG   SMCI LLY NVDA COST MSFT MCD AMZN WMT AIG   SNAP 

coco88888

Well, I guess we’ve got an audio problem there, Mark, I’m sorry. I do know MGM. I do know Tesla. And I do know AIG. But a negative 23% move after hours is pretty bad for the company Upstart

DrunkBusinessMan

AIG ?

tylermm03

Anyone making a play on AIG for earnings?

rollodxb

Would buying calls on AIG work as buying calls on AI?

Independent-Dream582

Insurance companies did well last week. I think calls on AIG are a piece of 🍰

LongLiveNES

>US nationalised several companies during 2008. Albeit for different reasons than China, the point is they have the capability to overtake any company if they choose to assert control. This is one of those "technically correct, in practice complete bullshit" statements. First off, they did not randomly decide to take over AIG and GM - they bailed them out. Second, they exerted very little control (if I recall it was only executive pay and that's it). If the US government randomly disappeared Jeff Bezos or Mark Zuckerberg I would sell every fucking asset I have to buy a bunker and a shit ton of guns/ammo/food like those crazy ass preppers. Ain't gonna happen.

slayez06

idk I made a killing with AIG in 2009. If you get in after the bailout, it's almost a sure fire thing

Longjumping-Funny615

Also $AIG is an insurance company.

37366034

Probably Sompo, AIG, Axa, or Chubb.

wyrdough

More than that, Bear Stearns was already thought to be weak by the wider market, so their implosion didn't come as a huge surprise. Not so with Lehman, which brought down a triple whammy of the fact of their failure, the surprise at there not having been a shotgun wedding to at least soften the blow, and then everybody realizing AIG was toast so it wasn't just going to be the shit tier bondholders taking the total loss, all in the span of a couple of days. I think people forget how 2008 was a perfect storm of shit and how all encompassing it was because it was both global and not really restricted to housing or finance because most of the credit market ground to a halt to the point that normie businesses weren't really sure that they'd have access to the short term lines of credit they needed to keep paying people and getting paid, regardless of how good the books actually were. Hence the massive layoffs that further exacerbated the crisis and made it so that it wasn't just the subprime loans that went bad.

Bossie81

Genesis AI. $AIG Long hold. But, genius technology

Misslitty_1990

$[TROY.CN](https://TROY.CN) $[AIG.CN](https://AIG.CN) $ATX.V

Noddite

It is hard to say that. WaMu was like $100 billion larger than First Republic. But 2008 was also not just banks, you had insurers like AIG and pretty much anyone that had a loan. TARP was $700 billion, and the FED had secretly funded banks with like $3.5 trillion that the CEOs neglected to bring up when they were begging for TARP money before Congress.

Jarsyl-WTFtookmyname

I hear you should invest in Lehman and AIG. You should hear his thoughts or mortgage backed securities though, according to old Cramer here even if every single subprime loan in America failed "you wouldn't even notice" as in, it won't even affect the mortgage industry or the securities.

riverSparrow

Airline stocks spiraling downwards these past few days. UAL AIG next to go down.

mc_snails

ALL DEVS CO'S : FUU.V ( Major PR today) SUU.V (Both Uranium Producers) & AIG.CN His AI Wildfire mitigation and AI mining modular. all these companies have been preforming beyond expectation. They say a rising tide raises all ships, well devs tides rising and all 3 of these are going with it.

mc_snails

[AIG.CN](https://AIG.CN) is my bet

Kaliasluke

When governments bail out companies, they don’t necessarily bail out the shareholders. AIG survived the financial crisis, its shareholders not so much.

slayez06

That's nothing.. my broker sold 2500 for $12 without my concent in 2008 and put it in AIG....AIG....

mc_snails

AIG was the play today

harrison_wintergreen

"All these Sears downgrades are irrelevant. They're completely dominant, along with General Motors and AIG. I'm excited about buying more shares at a discount."

Misslitty_1990

$[AIG.CN](https://AIG.CN) took a beating today, could be a nice in and out play on the bounce tomo

The_Troll1818

Why AIG

Already-Price-Tin

An investment in GM pre-bailout would've dropped 100%, down to $0 per share, permanently. An investment in AIG pre-bailout would've dropped 97% right off the bat, with some recovery back to "only" about a 92% drop 15 years later. An investment in Citi pre-bailout would've dropped 97% right away, climbing back to about an 87% drop about 15 years later. "Might get bailed out" is not a good investment thesis.

Already-Price-Tin

> the US Government will always bail them out. The US Government will always bail out *the company*, but they can leave *shareholders* with nothing. It happened with GM: shareholders got nothing in the 2009 bankruptcy, so the stock went to $0 and never came back. It happened with AIG: shareholders got diluted down to about 20% of the company, while the company itself got saddled with debt. Someone who invested $10,000 in AIG in 2000 would have shares worth about $800 today (92% drop). It happened with Citigroup: the company got saddled with punitive debt as part of the bailout, while still getting dragged down by its bad investments, and then emerged into a regulatory environment that made it difficult to reach its old valuations. Someone who invested $10,000 in Citi in 2000 would have shares worth about $2200 today (78% drop). I don't think you can look at the history of government bailouts and conclude "oh it's good to invest in companies that get bailed out."

H3rbert_K0rnfeld

AIG has entered the chat

Justzyn_Jefferzyn

Time to buy AIG

Best-Alternative-113

AIG doing well h3ading into 2024.

Puzzleheaded_Mine358

I’ve invested during several crashes (9/11–I was in Jr High, AIG collapse ‘08, 2009-2011…etc.) AIG was one of the most lucrative purchases I made. I bought Starbucks in 09–sold it way too soon, and in 2011 Logitech…all 10-bagger stocks.

NoDemand716

I resonate well with this. I opened a brokerage account in March of 2009 on the day the Dow hit its lowest and lump summed my entire savings at that point ~7k as a college student. I had no idea what I was doing, very emotional, switched stocks rapidly, and pretty much dependent on what Etrade recommended. Needless to say I only bought stocks, held onto the losers (GME at the time (Sold ~2016), RIG, AIG) and sold the gainers for a quick buck (LVMH and CVX). In 7 years of a predominant bull market, I broke even. Poor results. Any broad market ETF would have 3-5x at my entry point. It was an inexpensive life lesson that now, all I do is DCA into ETFs and keep 5% of my portfolio dedicated to actual stock picking after DD.

redditor_the_best

This is exactly what they do with failing banks. The FDIC siezes the bank, investors are wiped out or given a big haircut in a fire sale, and depositors are made whole. Executives are typically fired. Fannie Mae was nationalized in a different way in 2008. What you're thinking of is the 2008 crisis where some major financial institutions were bailed out. That was a problem of a different magnitude. I do agree that the government should have given more of them the Fannie treatment. AIG was sort of a hybrid situation. But allowing all the huge banks (depositor banks or investment banks) to fail at once would have led to a massive depression because of the inability of major corporations to fund their operations. Could that whole thing have been handled better.. Definitely. Unfortunately the law doesn't support a lot of what people think should have happened (jail time for execs, for example.. They tried with several and every time they lost. Or claw backs of massive incomes achieved via super high risk speculation that later sank the firms. In some cases after the fact bonuses could and were clawed back or canceled though ) But the people who just blithely say that we should have met the firms fail generally don't know what they're talking about or have an axe to grind.

HaveAKlondike

AIG had to sell off a majority of their assets. In 2006 they had over 1T. Now they are at 300B.

okletstrythisagain

I guess I wasn't clear in my comment. By "eye opening" I meant I was surprised that those people could believe that. They were in some kind of cruel, selfish denial contrary to established facts. I think the conversation was before Wells Fargo and the other most egregiously illegal banks were found criminally guilty of not meeting regulatory standards for issuing loans, so they just refused to believe the news stories because there hadn't been a verdict yet. But it was not just "corporate greed" from banks issuing reckless mortgages. It was a failure of government to regulate financial derivatives (CDO credit default swaps) and the securitization of mortgage debt. The banks started making money by selling the securitized mortgages, which created an incentive to cheat on mortgage issuance to have more mortgages to sell off. Then other banks started trading unregulated CDO derivatives which offered "insurance" to people betting on the securitized mortgages, but since they weren't regulated they didn't have enough money to back up the CDO's they were issuing. So, my recollection was that when the low quality mortgages began to default, they crashed the market price of the securitized mortgages. This led to investors who bought CDOs to insure themselves from this situation all asked for their payout simultaneously from AIG and probably others who issued the CDOs. Those issuers did not have the liquidity to honor the derivatives they sold, and went poof. The sudden insolvencies, mainly AIG, cascaded through the entire banking industry with bag holders all around.

HollywoodCreeper

I could still loose money. The crazy thing is that I believed in the companies I shorted! Hahahaha I just wanted to squeeze a little money on the down side. Hahaha AIG after 2010.. Tesla......Shake Shack at the time of the pandemic... Let me at it. If I went the other way, I'd be a multimillionaire. It might be a Western NY Kodak, Buffalo Bills thing.

Mail_Order_Lutefisk

Probably a few million bucks. I don't even keep track of it but once a year when I tally everything up. It's in multiple accounts across five different brokerages and I intentionally avoid looking at them as a whole because I have been known to freak out in the past when I have big down days. You can perfect time two recessions but when you have a portfolio dragged down by my egregiously bad option trading strategies and a position in Lehman bonds plus over a thousand shares of AIG that dropped like 90% it's pretty easy to not have as big of gains as you hoped to see. And that's ignoring my major losses on Citibank, too. I remember buying Apple for 70 a share in 2009. I bought a thousand shares and sold at 71 to lock in my thousand bucks. That one actually stings the worst.

Mail_Order_Lutefisk

Yeah, he married bad. My wife bought the last two deep dive market bottoms to the day in 2009 and 2020 and she pushed me hard to buy a half a million face of long treasuries from mid-September through mid-November. If you have degenerate gambling tendencies you need a wife who watches the markets like 5 minutes a week and preserves half of your portfolio. My wife made me let her direct half the portfolio after I got absolutely wiped on AIG and Lehman. This woman should have been on his trades like stink on sh1t. I buy 5 calls and I get a call from my wife an hour later wanting to know the angle.

Mordrim

US can own shares. The government owned shares in AIG as part of its bailout after the great financial crisis.

Already-Price-Tin

> company the government could support That's basically meaningless for a shareholder looking for a return on investment, though. GM, AIG, and Citibank got government support in the 2008 crisis. Well, the companies did. GM's shareholders got wiped out, down to literally $0. AIG's shareholders were diluted by about 80%. Citi's shareholders were diluted by about 25% (as the company was saddled with debt that had higher priority than the shareholders). Investing in those companies with a "too big to fail" thesis would've been disastrous.

me9o

Jesse, what the fuck are you talking about? The video is from 2009, not "the 70's and 80's". People from 2009 had relatively recently been through the dot-com bubble, and knew very well that stock market crashes could happen, whole industries could go under, and they ought to have rainy-day funds to cover X months of transitioning. 2009 was so spectacularly normal as far as crashes go that we can really have no sympathy for idiots who held everything in AIG stock and "had to sell" at the exact wrong time because of their own complete financial incompetence. Just have some cash and a mix of short/medium term bonds, it doesn't require some crazy voodoo genius play to not put everything you own or your entire retirement fund on the stock market, especially if you plan to retire in the next 5-10 years.

SlipSpace21

Unless you're invested in the company stock 100% (see Enron) it wouldn't matter. If you own a diversified portfolio in a Fidelty 401k and Fidelity goes tips up tomorrow, you still own the assets in that diversified portfolio. You'll just get a new custodian. That said, there were a lot of people at Merrill Lynch, Bear Stearns, Lehman, AIG etc that had all or most of their retirement plan in company stock or at least had significant comp in that stock. That's a headshot to your portfolio

Sparky_SE81

When AIG and Lehman cubicle workers were marching out fired the electrician still showed up to turn off the lights lol 🤣

jeopardy_loser

had no idea AIG had that many employees

Dubdude13

Sometimes, you need to raise cash as well as avoid single stock risk…look what happened to Hank Greenberg’s fortune when AIG shit the bed.

fan_of_hakiksexydays

Comments like these really make me laugh, when I have been working for years for a company that has not only been using blockchain to improve its products, but using smart contract and Ethereum to innovate new services for our customers and make our company much more competitive. And then this made me laugh the most: >and nothing of value has been produced For the past several years I've been meeting people and finding out about other companies in the field at trade shows and industry expos. I've learned over the years that even the big boys are starting to jump in on this technology, and have started implementing it and experimenting. Companies like IBM, Microsoft, AWS, Alphabet, Apple, Tencent, Tesla, Nestle, Alibaba, Johnson & Johnson, Walmart, P&G, AIG, Aegon, Pepsico, Nvidia, Intel, Walt Diseny, Unilever, Samsung, Verizon, Honeywell, Comcast, JP Morgan, Oracle, Cisco, Exxon, Shell, UnitedHealth, UPS, Home Depot, Pfizer, Shopify, Metlife, Siemens, Qualcomm, etc... Everyone on Reddit has an opinion, whether they have any clue what they're talking about or not. And that's fine. I know what I'm in for when I jump on Reddit lol.

this_Name_4ever

I am not a home owner. I do have a gemstone collection (all GIA or AIG certified worth around 100k. I only would need like 10-20k to get my credit score to the point where I could then get a balance transfer card. I make enough at this point to pay it off in a couple years.

engdeveloper

They made $150 billion profit in a single year, off a single investment (AIG). This is not unusual, there's maybe 200-300 billion USD in profits off of pandemic/TARP investments... EVERY year, $60 billion a month, \~ $600 billion in MBS/treasuries pure profit in 2023 or so. They did $60 billion in Oct, so that number is conservative.

SaltyShawarma

Man, I remember buying up so much AIG...

Illustrious-Fan-3145

Buffet didn’t get a bailout lol it was the opposite. He was so liquid that AIG asked him for help as did BOA

cutiesarustimes2

Son of an AIG

TodayNo6531

*AIG has entered the chat*

Noddite

Let's be honest and just put AIG there...this is what we've been struggling to put off for years

katahg

It’s never totally effective. I’m not sure what you are talking about in reference to AIG. They are one of the many carriers I sell for and they are still very much in business. They had bankruptcy in 2008 and got bailed out and then in February they changed their name. Both times everyone with any policy still has it. So maybe you can elaborate on what you are talking in regards to?

y0da1927

Yes that worked so well for AIG. If the regulatory barriers to failure were totally effective, AM Best Ave other credit ratings would not exist. There is credit risk. How much depends on the company.

Googgodno

MBS were insured as well, i think AIG was the largest insurer of MBS. That was also the risk in 2008.

H3rbert_K0rnfeld

Scion was playing both sides and propping up AIG

Skythee

Lehman Brothers went out of business. Meryll Lynch was purchased by Bank of America, they may have gone under otherwise, I'm not very knowledgeable about this. The federal government had to offer a large bailout package to stop further bankruptcies. So overall no the banks didn't effectively manage their risk exposures. Another problem with a crash of this magnitude is that the companies providing these CDSs, AIG for example, had such large payouts to make that they themselves became insolvent and unable to honour their contracts. This is the reason that in the Big Short, the heroes choose to sell their positions rather than wait for the insurance payoff, because they're worried the insurers will go bankrupt before they cash in.

00Anonymous

Also want to add that the *big* reasons sub prime mortgage backed securities made things worse was the "worst case" default rates used to value them was around 5%. The hyper low interest rates at the time artificially reduced the default rate to that low number and somehow *no one* wanted to realize that was the case. So when rates rose, sub prime folks couldn't pay and couldn't refinance, so shockingly default rates skyrocketed. So the value of the mbs got crushed. By the same token AIG and others were selling CDS because they literally thought defaults would never be enough to force them to pay out. Hence, when MBS prices collapsed, there was a rush to cash in CDS. It turned out that AIG and other who sold CDS didn't have enough capital to pay out on the CDS they sold. And that's how the banks went bankrupt.

p-s-82

Yea it is a catastrophic event and it just happened in 2008.. where everybody had insurance against everyone until it went around and one or two companies - AIG and Lehman were left holding the bag. -- missing annuities is the biggest worry for me because i am ok with my stocks portfolio going to 0 in such an event but annuities are like insurance for me. the other option is to literally stay in cash whose value will be nothing in 10-20 years time due to inflation.

Smithmonster

No just that last time AIG was a major issue.

Routine_Salamander59

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Secure_Shirt_3179

Hey! Seen you are in SEO! I have a partner, Michael, he is an SEO guru! 16 years’ experience in enterprise-level SEO having worked for brands such as Sony, AIG and the NFL. Do you want to get up to 700 power blend backlinks in unique, relevant articles? If yes, message me, please hotofferbest@gmail.com.