UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next
Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35367  
Subject: Re: AIG subsidiary bonds Date: 9/16/2008 2:20 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
They were talking about this situation on CNBC this am. Its the parent AIG holding company that has the problem. The subsidiaries are not likely to be affected directly, but if they file for bankrupcty everything could get sucked in.

However, now they are talking again about commerical bridge loan; it is not possible. AIG lacks suitable collateral for such a loan. So a fed assist or access to the Federal Reserve System might still come through for AIG.

Otherwise, the Lehman situation will probably follow. Selling profitable subsidiaries is one of the easiest ways to raise cash once they are in bankruptcy. Letting profitable businesses collapse in the chaos is not in anyone's interest (though competitors are probably doing quite well picking off the best business and people).

Successful on going businesses will probably be OK, but in a bankruptcy one still has to worry until the court agrees and the deal goes through.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Value Hounds

Clorox Isn't Cleaning Up
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement