In Response: A.I.G. Unit Took Added Risks in Sideline Business, Report Says

I KNEW IT! As some of you know, my father is a banker, and being a banker, the economy is always the subject of conversation on car rides to and from my hockey games. I remember that late last year, my father and I talked about subprime lending on the way to a game in Lewiston.

There had been rumors about AIG being involved in subprime lending and that this was very risky behavior. My father was very animated when it came to teaching me about subprime lending and I must say that I am very glad that this conversation was not in vain; for it was because of subprime lending that company went under.

A.I.G. Unit Took Added Risks in Sideline Business, Report Says

This article talks about how AIG's "Investments Unit" made numerous risky business deals so that the company could make an extra 0.2 point of earning every quarter. 0.2 points for AIG was the equivalent of $150 million extra per quarter.

"In running the securities-lending business, AIG Investments bought tens of billions of dollars in subprime mortgage bonds, according to the newspaper."

These risky business deals were subprime loans. The people were were loaned the money defaulted on their loan and it was fueled by this reason, that the company went under.

Response to: Who Owns AIG?

After reading this article, I have become more of a learned person on the subjects of AIG, Who owns the company, and what those people who are in control of the company could, and might do to the company.

I feel that the trustees that have been granted "ownership" of the company could potentially dismantle the company and use the companies 1 trillion and change assets to help fund other government plans.In retrospect, these trustees could potentially salvage what is left of the company and rebuild it to its former stature.

I am very interested in seeing how, or if this situation resolves itself.

Who Owns AIG?

"The people controlling A.I.G. are Jill M. Considine, former chairman of the Depository Trust & Clearing Corporation; Chester B. Feldberg, former chairman of Barclays Americas; and Douglas L. Foshee, president and chief executive officer of El Paso Corporation. These are the three trustees of the A.I.G. government trust."

AIG is now under the control of the people listed above, who are all working for the government. This article is talking about how the government now holds the controlling stock of AIG. Most people do know this, but the Government traded the money that AIG received for the controlling stock of the company.

This article also talks about what the government is thinking of doing and what the author thinks the government should do with the company. For example,"In exercising their discretion to vote, the trustees are supposed to vote to (x) maximize A.I.G.’s ability to honor its commitments to, and repay all amounts owed to, the federal government and (y) A.I.G. being managed in a manner that will not disrupt financial market conditions."