Quote:
Originally Posted by the
I watched Hank Greenberg on Charlie Rose last night. He mentioned that AIG as a whole is a very solvent profitable company, with a trillion in assets.
I haven't been following it super closely, and don't understand the intricacies of what AIG even is (an insurance company? a holding company? etc.).
But if they are truly solvent and profitable, with a trillion in assets, why do they need an $85B bailout. Why not just draw down on some of their trillion in assets?
|
They need cash to post as collateral as their bad sub prime bonds can't be priced. They are still collecting interest on them, they just don't know what the rate of default on the mortgages in that bond package will be.
AIG is aholding company and our Sun is a holding company for the planets. All those planets are PROFITABLE for AIG. But the holding company has so much in Mortgage bonds that it sank the company once the shorts decided it was their turn to loot.