The media coverage of the AIG crisis is completely off the mark. The Fed DID NOT bail out AIG. It did something better and worse. The fed had two choices, 1) bail out AIG or 2) let it go bankrupt. The Fed made both choices. It bailed them out per se with an $85 billion dollar loan, taking 80% of the company in the process. However, the loan came with an 11% interest rate. This effectively prevents AIG from ever getting back on its feet. Instead the company has been given time to arrange for the orderly sale of its assets to repay the loan, but AIG will not survive the process. So the correct coverage of this story would be to say that AIG has gone bankrupt and the Fed has stepped in to allow for a slow controlled sale of its assets.
From: Ron Bellows – Senior Risk Management specialist for the $280 billion criminal megalopoly of AIG-Marsh & McLennan-ACE Ltd
Sent: Monday, May 03, 2004 7:39 PM
To: BEARARMS – [Son of Ron Bellows]
Cc: rest
Subject: WE [megalopoly] insure… Haliburton
my point the other day – that these people have been taken and treated as war combatants when there is no war – is totally against the constitution – which apparently doesn’t exist anymore
BUT get this .. ..
I have now been given the project of trying to figure out our exposure for our overseas defense contractors we insure –
thing is – the policy excludes ‘acts of war’ ( as most do ) – BUT – includes Terrorism ??
so.. .If a contractor dies from an act of war – we pay the widow and the gov’t is supposed to reimburse us from their war chest
so now – the feds are saying – “there is no war” – and we don’t get reimbursed – for all the dead, captured and “lost” contractors ( and our loss numbers are showing lots more than the news is reporting )
so all the actuaries and underwriters are freakin out – watching their policy breach limits and bleed cash
so I got the order Sunday – go and figure out what KBR, Centcom and Haliberton employee exposure are and what they are doing to control their contract employees exposure ??
AND – this is a no win – If I pull the plug ( write a report that says its a poor risk ) my name goes to the head of KBR etc – If I say its all good – we loose money and megalopoly stomps on my tushy
aaagghhh
later boys
I need a drink . . . .