AIG says emergency aid used to pay other banks
Under fire for bonuses, AIG says over $90 billion of its bailout money went to other banks
Jennifer Malloy Zonnas, AP Business Writer
Monday March 16, 2009, 12:15 am EDT
Buzz up! Print NEW YORK (AP) -- American International Group Inc. used more than $90 billion in federal aid to pay out foreign and domestic banks, some of whom had received their own multibillion-dollar U.S. government bailouts.
The embattled insurer's disclosure on Sunday came amid outrage on Capitol Hill over its payment of tens of millions in executive bonuses, and followed demands from lawmakers that the names of trading partners who indirectly benefited from federal aid to AIG be made public.
The company, now about 80 percent owned by U.S. taxpayers, has received roughly $170 billion from the government, which feared that its collapse could cause widespread damage to banks and consumers around the globe.
"The ability of AIG to meet its obligations is important to the stability of the U.S. financial system and to getting credit flowing to households and businesses," Federal Reserve spokeswoman Michelle Smith said.
Some of the biggest recipients of the AIG money were Goldman Sachs at $12.9 billion, and three European banks -- France's Societe Generale at $11.9 billion, Germany's Deutsche Bank at $11.8 billion, and Britain's Barclays PLC at $8.5 billion. Merrill Lynch, which also is undergoing federal scrutiny of its bonus plans, received $6.8 billion as of Dec. 31.
The money went to banks to cover their losses on complex mortgage investments, as well as for collateral needed for other transactions.
Other banks receiving between $1 billion and $3 billion from AIG's securities lending unit include Citigroup Inc., Switzerland's UBS AG and Morgan Stanley.
Municipalities in certain states, including California, Virginia and Hawaii, received a total of $12.1 billion under guaranteed investment agreements.
The company said it used billions more to fund its Maiden Lane business, which was set up following the federal bailout to purchase toxic assets, and to repay debt and provide capital for some of its operations.
"I've been asking for this information for months. This is a good first step, but I'm concerned by how long it took,' said Rep. Carolyn Maloney, D-N.Y., who is chair of Congress' Joint Economic Committee.
The details from AIG came after Obama administration officials and top Republicans voiced sharp criticism over $165 million in bonus payments AIG said it must make Sunday. The contracts are part of a larger total payout which has been reportedly valued at $450 million.
In a letter to Treasury Secretary Timothy Geithner dated Saturday, AIG Chairman Edward Liddy said outside lawyers informed AIG that it had contractual obligations to make the payments and could face lawsuits if it did not do so.
Liddy said the company entered into the bonus agreements in early 2008 before AIG got into severe financial straits and was forced to obtain a government bailout.
AIG has agreed to the Obama administration's requests to restrain future payments.
Associated Press Writers Candice Choi in New York and Jeannine Aversa in Washington, D.C. contributed to this report.
Under fire for bonuses, AIG says over $90 billion of its bailout money went to other banks
Jennifer Malloy Zonnas, AP Business Writer
Monday March 16, 2009, 12:15 am EDT
Buzz up! Print NEW YORK (AP) -- American International Group Inc. used more than $90 billion in federal aid to pay out foreign and domestic banks, some of whom had received their own multibillion-dollar U.S. government bailouts.
The embattled insurer's disclosure on Sunday came amid outrage on Capitol Hill over its payment of tens of millions in executive bonuses, and followed demands from lawmakers that the names of trading partners who indirectly benefited from federal aid to AIG be made public.
The company, now about 80 percent owned by U.S. taxpayers, has received roughly $170 billion from the government, which feared that its collapse could cause widespread damage to banks and consumers around the globe.
"The ability of AIG to meet its obligations is important to the stability of the U.S. financial system and to getting credit flowing to households and businesses," Federal Reserve spokeswoman Michelle Smith said.
Some of the biggest recipients of the AIG money were Goldman Sachs at $12.9 billion, and three European banks -- France's Societe Generale at $11.9 billion, Germany's Deutsche Bank at $11.8 billion, and Britain's Barclays PLC at $8.5 billion. Merrill Lynch, which also is undergoing federal scrutiny of its bonus plans, received $6.8 billion as of Dec. 31.
The money went to banks to cover their losses on complex mortgage investments, as well as for collateral needed for other transactions.
Other banks receiving between $1 billion and $3 billion from AIG's securities lending unit include Citigroup Inc., Switzerland's UBS AG and Morgan Stanley.
Municipalities in certain states, including California, Virginia and Hawaii, received a total of $12.1 billion under guaranteed investment agreements.
The company said it used billions more to fund its Maiden Lane business, which was set up following the federal bailout to purchase toxic assets, and to repay debt and provide capital for some of its operations.
"I've been asking for this information for months. This is a good first step, but I'm concerned by how long it took,' said Rep. Carolyn Maloney, D-N.Y., who is chair of Congress' Joint Economic Committee.
The details from AIG came after Obama administration officials and top Republicans voiced sharp criticism over $165 million in bonus payments AIG said it must make Sunday. The contracts are part of a larger total payout which has been reportedly valued at $450 million.
In a letter to Treasury Secretary Timothy Geithner dated Saturday, AIG Chairman Edward Liddy said outside lawyers informed AIG that it had contractual obligations to make the payments and could face lawsuits if it did not do so.
Liddy said the company entered into the bonus agreements in early 2008 before AIG got into severe financial straits and was forced to obtain a government bailout.
AIG has agreed to the Obama administration's requests to restrain future payments.
Associated Press Writers Candice Choi in New York and Jeannine Aversa in Washington, D.C. contributed to this report.
16/3 2009 10:34 le 0
4679 Barclays in strong start to '09, may sell iShares
Barclays says it made a 'strong start' to year, confirms talks to sell asset iShares unit
Monday March 16, 2009, 4:18 am EDT
Buzz up! Print Related:Barclays plc
LONDON (AP) -- Barclays PLC said Monday it has had a "strong start" in 2009 and confirmed it has been in talks with several parties about selling iShares, its San Francisco-based asset management unit, without yet signing any deals.
Related Quotes
Symbol Price Change
BCS 4.42 0.00
{"s" : "bcs","k" : "c10,l10,p20,t10","o" : "","j" : ""} News reports said Barclays was looking to raise cash to avoid giving the government a stake in the company as the cost for participating in an insurance program for bad assets.
"No decision regarding the disposal of any business has been taken by the board of Barclays," the company said in an announcement to the London Stock Exchange.
However, the bank's statement was upbeat on its performance in the first months of the year.
"Barclays businesses continue to perform well and have had a strong start to 2009," the company said, without specifying further.
The company also confirmed it was negotiating with the Treasury and the Financial Services Authority about participating in the insurance program, which covers any potential losses on assets for which there is no longer a market due to the credit crunch. Such assets may be complex financial instruments based on the collapsed U.S. subprime-mortgage market.
March 31 is the deadline for signing up the program.
"Barclays decision whether and to what extent to participate in the scheme will be based on the economic merits to shareholders of any such participation," the company said.
The Financial Times said a sale could net Barclays anywhere from 3 billion pounds to 5 billion pounds.
The Financial Times and other reports suggested that Barclays was interested in selling part of its stake in iShares, although the company merely referred to a "disposal of iShares."
On the Net: http://group.barclays.com
Barclays says it made a 'strong start' to year, confirms talks to sell asset iShares unit
Monday March 16, 2009, 4:18 am EDT
Buzz up! Print Related:Barclays plc
LONDON (AP) -- Barclays PLC said Monday it has had a "strong start" in 2009 and confirmed it has been in talks with several parties about selling iShares, its San Francisco-based asset management unit, without yet signing any deals.
Related Quotes
Symbol Price Change
BCS 4.42 0.00
{"s" : "bcs","k" : "c10,l10,p20,t10","o" : "","j" : ""} News reports said Barclays was looking to raise cash to avoid giving the government a stake in the company as the cost for participating in an insurance program for bad assets.
"No decision regarding the disposal of any business has been taken by the board of Barclays," the company said in an announcement to the London Stock Exchange.
However, the bank's statement was upbeat on its performance in the first months of the year.
"Barclays businesses continue to perform well and have had a strong start to 2009," the company said, without specifying further.
The company also confirmed it was negotiating with the Treasury and the Financial Services Authority about participating in the insurance program, which covers any potential losses on assets for which there is no longer a market due to the credit crunch. Such assets may be complex financial instruments based on the collapsed U.S. subprime-mortgage market.
March 31 is the deadline for signing up the program.
"Barclays decision whether and to what extent to participate in the scheme will be based on the economic merits to shareholders of any such participation," the company said.
The Financial Times said a sale could net Barclays anywhere from 3 billion pounds to 5 billion pounds.
The Financial Times and other reports suggested that Barclays was interested in selling part of its stake in iShares, although the company merely referred to a "disposal of iShares."
On the Net: http://group.barclays.com
16/3 2009 10:59 stengård 04681 Hej le...
Det er nogle rigtigt gode og relevante links du visder her - men vil du gøre overskueligheden på ProInvestor en tjenenste - så ryk AIG-indlæg til US og Barclays indlæg til europa - folk finder dem alligevel...
Det er nogle rigtigt gode og relevante links du visder her - men vil du gøre overskueligheden på ProInvestor en tjenenste - så ryk AIG-indlæg til US og Barclays indlæg til europa - folk finder dem alligevel...
16/3 2009 12:09 le 04685 det er jeg ikke enig med dig i
så vi skal nok finde ud af en eller anden form for ændring
i og med at vi har en global krise og en global konjunktur, hvor det man foretager sig i usa, england og andre lande samlet set er afgørende for verdensøkoniomien og dermed også danske aktier
og da debatsiden om danske aktier fylder mest er det naturligt for mig at lægge den slags indlæg der
men jeg må se hvad jeg kan gøre for jeg vil ikke ødelægge noget
på EI skriver jeg heller ikke andre steder end på aktiedebatten og synes at de forskellige debatfora om usa, norge, sverige mm reducerer focus i den samlede debat
det er OK at hvis det handler om enkeltaktioer at det måske kan lægges i de respektive lande, men ikke når det er overordnede strategiske forhold, der påvirker hele verden
men lad os lige høre hvad akademikeren har af kommentar, det er jo det han ønsker som jeg selvfølgelig også vil prøve at rette mig efter så godt jeg kan
så vi skal nok finde ud af en eller anden form for ændring
i og med at vi har en global krise og en global konjunktur, hvor det man foretager sig i usa, england og andre lande samlet set er afgørende for verdensøkoniomien og dermed også danske aktier
og da debatsiden om danske aktier fylder mest er det naturligt for mig at lægge den slags indlæg der
men jeg må se hvad jeg kan gøre for jeg vil ikke ødelægge noget
på EI skriver jeg heller ikke andre steder end på aktiedebatten og synes at de forskellige debatfora om usa, norge, sverige mm reducerer focus i den samlede debat
det er OK at hvis det handler om enkeltaktioer at det måske kan lægges i de respektive lande, men ikke når det er overordnede strategiske forhold, der påvirker hele verden
men lad os lige høre hvad akademikeren har af kommentar, det er jo det han ønsker som jeg selvfølgelig også vil prøve at rette mig efter så godt jeg kan
16/3 2009 12:18 le 04688 nu har jeg skrevet et indlæg om kinas bilsubsidier i asien debatten
men jeg syndes ikke det hører hjemme der fordi det er en global konjunktur parameter
men jeg syndes ikke det hører hjemme der fordi det er en global konjunktur parameter
16/3 2009 12:18 Administrator 04689 Hej Begge,
Landeopdelingen i debatten gør os ingen tjeneste. Vi kan se på visningerne at der er meget større aktivitet i det danske forum, så på den måde kan vi godt følge LE. Men landeopdelingen er der af den grund at vi netop skal kunne differentiere mellem de forskellige lande. Akademikeren er nok nær den eneste der skriver i Europa og Asien, så der er helt sikkert noget der ikke virker optimalt.
I ProInvestors sande ånd, synes vi derfor godt at vi vil spørge jer, brugerne om følgende:
Vil I foretrække at vi droppe landene og istedet for gør det banchespecifikt? Altså Medicin/Biotek/Industri/etc.?
Landeopdelingen i debatten gør os ingen tjeneste. Vi kan se på visningerne at der er meget større aktivitet i det danske forum, så på den måde kan vi godt følge LE. Men landeopdelingen er der af den grund at vi netop skal kunne differentiere mellem de forskellige lande. Akademikeren er nok nær den eneste der skriver i Europa og Asien, så der er helt sikkert noget der ikke virker optimalt.
I ProInvestors sande ånd, synes vi derfor godt at vi vil spørge jer, brugerne om følgende:
Vil I foretrække at vi droppe landene og istedet for gør det banchespecifikt? Altså Medicin/Biotek/Industri/etc.?
16/3 2009 13:01 stengård 04692 jeg er tilhænger af branchespecifikke fora ... og så genrelle samfundsmæssige..(som en branche )
16/3 2009 14:10 le 04706 det er svært
men kan man ikke lave en generel konunkturside?
brancheopdeling er sikkert også en god ide
men i og med at den danske side er den mest anvendte er det jo netop som du skriver nærliggende at skrive der, hvor der er mest aktivitet
og problemet med aktier er jo at det hele hænger sammen i en samlet helhed
konjunkturen i kina er afgørende for norden og for olieaktier i hele verden
nu har jeg lagt et indlæg om CDS problematikken under USA, men det er jo også globalt relevant
men kan man ikke lave en generel konunkturside?
brancheopdeling er sikkert også en god ide
men i og med at den danske side er den mest anvendte er det jo netop som du skriver nærliggende at skrive der, hvor der er mest aktivitet
og problemet med aktier er jo at det hele hænger sammen i en samlet helhed
konjunkturen i kina er afgørende for norden og for olieaktier i hele verden
nu har jeg lagt et indlæg om CDS problematikken under USA, men det er jo også globalt relevant
16/3 2009 14:22 stengård 04709 den generelel debatside er jo de facto - åbningssiden - og som sådan kan jeg godt følge dit argument Le -
På den enen side vil man gerne sikre a det er relevant infor og på den anden side er der overskueligheden - og så selvfølgelig det forhold at alt efterhånden hænger sammen...
På den enen side vil man gerne sikre a det er relevant infor og på den anden side er der overskueligheden - og så selvfølgelig det forhold at alt efterhånden hænger sammen...
16/3 2009 14:33 Administrator 04712 Vi tror også i maskinrummet at adfærd/forbrugsmønsteret på PI vil ændre sig i takt med at vi tracker hinanden. Vi kommer til at have en diskussion med hinanden på forum om hvordan vi laver den bedste debat overhovedet. Og dette er jo kun en begyndelse. Vi er totalt committet til at have den bedste, mest avancerede debat overhovedet på nettet. Således at det bliver nemt og overskueligt at dele indhold.
16/3 2009 14:56 DrueAgurken 04714 Helt sikkert... Lande er en død sild, det betyder alligevel ikke noget i investeringssammenhæng med mindre du ikke lige ved hvor du kan trade klokken 05.15 og bare vil handle noget.
4 segmenter, eller bare i to søjler 1: C20, 2:resten
4 segmenter, eller bare i to søjler 1: C20, 2:resten
