Man united's trying not to be second to the hammers.

[sammynb 3653]

http://business.smh.com.au/business/aig-on...80917-4i23.html

 

AIG on the brink as hopes mount for rescue

September 17, 2008 - 9:32AM

 

Insurance giant American International Group neared collapse yesterday, prompting further panic on global markets and a flurry of reports about a last-minute rescue to avert a financial calamity.

 

Shares in AIG - a company with one trillion dollars in assets and tentacles in many markets - went on a roller-coaster ride, sliding 70% at the open, swinging into positive and then closing down 21% after a 60-per cent plunge Monday.

 

But the Federal Reserve is considering extending a ''loan package'' of as much as $US75 billion ($94 billion) to avoid a cash crunch and bankruptcy, according to a person familiar with the negotiations.

 

The stance by federal regulators is a reversal from a position they held as late as last night, and people with knowledge of the talks are ''cautiously optimistic,'' said the person, who declined to be identified because negotiations are confidential.

 

The person gave no timetable for reaching an agreement or estimate on how much money New York-based AIG would need. New York Fed spokesman Andrew Williams declined to comment and AIG spokesman Nicholas Ashooh didn't immediately return a call seeking comment. Treasury spokeswoman Jennifer Zuccarelli had no immediate comment.

 

''To the extent that a bridge loan or some type of liquidity provision allows AIG time to sell some assets on its balance sheet and time to maintain it's investment-grade rating at A or higher, I think it's a good move,'' Bill Gross, co-chief investment officer of Newport Beach, California-based Pacific Investment Management said in a Bloomberg TV interview.

 

'A necessary step'

 

''The Fed doesn't have to necessarily put its own capital at risk,'' Gross said. ''We'll see what the plan says, but I think it's definitely a necessary step.''

 

Goldman Sachs and JPMorgan Chase were working with AIG to determine how much the insurer needs, said two people familiar with the talks yesterday. Goldman has helped the Fed appreciate the effects that an AIG collapse would have on financial institutions, the first person said.

 

Senate Banking Committee Chairman Christopher Dodd warned the Fed and Treasury against a rescue of AIG without checking with him first, expressing anger about past incidents where he was only informed afterwards. He also said he was skeptical that AIG merited aid while Lehman didn't.

 

''Tell me why this situation is different from Lehman,'' he said. ''I'm willing to listen.''

 

AFP, Bloomberg

Edited September 17, 2008 by sammynb

[Fop 1]

[Park Life 71]

The Federal Reserve?

 

Surely there can't be any reserves left?!

[Happy Face 29]

They'd love it.

 

Just go out and rake in a few quid off another sponsor.....as European champions they'd demand a shitload more i guess too.

 

http://afp.google.com/article/ALeqM5jeWVoU...zNgwTvdrCx3RPFg

[Isegrim 10033]

Looks like things going from bad to worse for hammers with the financial troubles hitting the Icelandic banking system big style.