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AIG Cash Burn Rate Skyrockets: Back to the Well
AIG is just now learning that being on the dole sux. They want a do-over with a better interest rateNow they also want the government to buy their still-falling CDSs it has on its books. According to some financial blogs, AIG wants to get this done before they report earnings Monday, after their debt gets downgraded. From TFA: 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. Posted by: badanov 2008-11-08 |
| http://www.rantburg.com/poparticle.php?ID=254677 |