A government bailout of insurance giant AIG is 'on the table,' according to investment banking sources who spoke with Charlie Gasparino of CNBC. There's been no confirmation from the Federal Reserve.
Update: David Faber says his sources are saying that a private solution is unavailable. He could not confirm the report that a bailout by the Fed is now under consideration.
This is a surprising development, especially given the earlier reports that the Treasury and the Fed were resisting a bailout. Then again, we're on record as supporting an incoherent and unpredictable policy responses to financial meltdowns. Maybe the government is listening.
Posted by guest , Sep 16, 2008 11:00AM
Heard this is done.
Posted by guest , Sep 16, 2008 11:00AM
Stock price rose from -42% to -22% in the 20 secs or so story as it reported on CNBC. Makes you wonder.
Posted by diablo , Sep 16, 2008 11:01AM
1. If this is false, then give Gaspar another medal for being a tool to manipulate the market.
2. If this is true, the fed prints money, don't they?
Posted by guest , Sep 16, 2008 11:01AM
Stock price rose from -42% to -22% in the 20 secs or so that Gasparino reported the story on CNBC. Makes you wonder.
Posted by guest , Sep 16, 2008 11:02AM
I hate Charlie Gasparino. He's already self-absorbed enough and now he goes and moves the market. Wait until we hear the Gasbag tooting his own horn on this one.
I'm turning my volume off.
Posted by guest , Sep 16, 2008 11:02AM
Haven't those morons figured anything out? A government bailout will wipe out all common, why the hell is the stock trading up? This is what happens when Time Skyes, Sham-wow, Mayo & Co. dominate the markets.
Posted by guest , Sep 16, 2008 11:02AM
Stock price rose from -42% to -22% in the 20 secs or so that Gasparino reported the story on CNBC. Makes you wonder.
Posted by guest , Sep 16, 2008 11:03AM
Gasparguido
Posted by guest , Sep 16, 2008 11:03AM
#6 here, meant Tim Sykes
Posted by guest , Sep 16, 2008 11:04AM
Stock price rose from -42% to -22% in the 20 secs or so that Gasparino reported the story on CNBC. I need to upgrade my trading account.
Posted by guest , Sep 16, 2008 11:04AM
just put the dollar online as a pdf... so we can all just print them as we see fit
Posted by guest , Sep 16, 2008 11:05AM
Know what makes me wonder? When a stock price rises from -42% to -22% in or around 20 seconds of Charlie Gasparino reporting a story on CNBC.
Anyone else?
Posted by guest , Sep 16, 2008 11:06AM
apologies for the repeat posts on the stock movement.
Posted by guest , Sep 16, 2008 11:06AM
@6 not if they just need access to discount window to repo assets to create liquidity.
Posted by guest , Sep 16, 2008 11:08AM
Know what makes me wonder? When a stock price rises from -42% to -22% in or around 20 seconds of Charlie Gasparino reporting a story on CNBC.
Anyone else?
Posted by guest , Sep 16, 2008 11:09AM
YAY! I am so excited that our government is going to take on all the risk that is currently burning Wall Street.
Who will rescue the bankrupt fed?
Posted by guest , Sep 16, 2008 11:09AM
U.S. Treasury needs to merge with Xerox to survive. Sell tomorrow to pay for today we have money to print bitches.
SPODE
Posted by guest , Sep 16, 2008 11:10AM
AIG goes under, turn out the lights, the party is over. Everyone has expoosure to them. Unbelievable that one desk can take down an entire firm, these CEO's need to be held accountable for this. I call for a Senate hearing on this, the least our government can do. People need to be held responsible for ruining the lives of the "little people"
Posted by guest , Sep 16, 2008 11:11AM
cnbc reporters making a 2 way market on fed bailout...
Posted by guest , Sep 16, 2008 11:12AM
didnt AIG turn down private equity money over the weekend because the CEO and Board didnt want to lose control of the firm?
why should taxpayers have to foot the bill because AIG's board & CEO are egomaniacs?
to hell with them, seriously.
Posted by guest , Sep 16, 2008 11:15AM
@16 Fed can't go bankrupt
Posted by guest , Sep 16, 2008 11:15AM
AIG vs FED and the FED blinked.
Posted by guest , Sep 16, 2008 11:15AM
and still and again, nothing for LEH. Why?
Posted by guest , Sep 16, 2008 11:17AM
Hank the Tank
Posted by guest , Sep 16, 2008 11:18AM
@23, 70 mn people have AIG policies - not as many people have LEH stock
Posted by guest , Sep 16, 2008 11:18AM
AIG turned down private equity money over the weekend?
If that's true then fuck'm and let'm burn.
Posted by guest , Sep 16, 2008 11:19AM
Gasbagarino is about to swallow his own foot. I hope he dies.
Posted by guest , Sep 16, 2008 11:19AM
Hey, 21 didn't a few other countries go or get damn close to bankrupt? Uh, what happens when the dollar is about as valuable as a peso? They'll have to print a hell of a lot of them to make the debt payments.
Posted by guest , Sep 16, 2008 11:19AM
cg just now-- "i didn't say money was on the table"
that's exactly what you said, asshat
Posted by guest , Sep 16, 2008 11:21AM
If you want to look good and not be bummy,
Girl you better give me that money!
http://www.youtube.com/watch?v=Hpx5e3A8bs4
Posted by guest , Sep 16, 2008 11:22AM
@14 isn't that what Lehman said? Look at where they are now...
Posted by guest , Sep 16, 2008 11:23AM
@21, yes it can http://www.minyanville.com/articles/index.php?a=16251
Posted by guest , Sep 16, 2008 11:24AM
@21, yes it can http://www.minyanville.com/articles/index.php?a=16251 in a different kind of way- by printing worthless money!
Posted by guest , Sep 16, 2008 11:25AM
to #26:
During a weekend scramble to shore up its finances, AIG turned down a capital infusion from a group of private-equity firms led by J.C. Flowers & Co. because an option tied to the offer would have effectively given them control of the company, an 89-year-old giant that does business in nearly every corner of the world.
http://online.wsj.com/article/SB122148503202636197.html?mod=googlenews_wsj
Posted by guest , Sep 16, 2008 11:26AM
@25 ok, but isn't that money separate from the messy part that's causing them troubles?
Posted by guest , Sep 16, 2008 11:28AM
@32
there is no constraint (other than one of political policy) on the Fed crediting member accounts. Therefore unless they make a conscious decision to default (go bankrupt) they can't.
How bout this:
If the Fed owns T-Bills it owes money to itself? how is that even fucking possible?
Posted by guest , Sep 16, 2008 11:31AM
Hank the Tank Hank the Tank..come on everyone lets go streaking....bring your green hat
Posted by guest , Sep 16, 2008 11:34AM
hmmmm, everyone but gs fails-- what kind of gs imperialism is that?
Posted by guest , Sep 16, 2008 11:34AM
i missed charlie g's spam email that aig was the pump and dump trade of the day. someone made up for the lot of money that they lost yesterday.
Posted by diablo , Sep 16, 2008 11:35AM
Carney, but who's in charge of policy? Hank P.? Ben? W? Condi? Barney? Sponge Bob?
Posted by guest , Sep 16, 2008 11:38AM
Post 18, agreed, what does that group of traders at AIG FP have to say for themselves I wonder?
Posted by guest , Sep 16, 2008 11:42AM
Attn: Those Commenting On His Greatness
I'm really getting sick of all of your disparaging comments about me. You're just jealous because I can move markets with the same ease that I can throw weights around the weight room. If you've got something to say, maybe we should step outside....?
Charlie "Don't Call Me Guido" Gasparino
Posted by guest , Sep 16, 2008 11:43AM
Typo in your update Carney.
I believe you meant - 'Maybe the government is listing'.
Posted by guest , Sep 16, 2008 11:50AM
What are the estimates on a Fed bailout?
Posted by John Carney , Sep 16, 2008 11:51AM
Ha!
Posted by guest , Sep 16, 2008 12:13PM
I hate Gasparino - How does this clown have this job. OJ Simpson has better enunciation. Objectively speaking, Gasparino is quite stupid. He enjoys being a bully.
Gasparino would make a great high school gym teacher.
Posted by guest , Sep 16, 2008 12:16PM
I hate Gasparino - How does this clown have this job. OJ Simpson has better enunciation. Objectively speaking, Gasparino is quite stupid. He enjoys being a bully.
Gasparino would make a great high school gym teacher.