Why exactly does the BBC feel the need to put the Manchester United link at the bottom of the article? Would they do this if AIG sponsored any other club?And so it begins for AIG. Will they be next?![]()
Why exactly does the BBC feel the need to put the Manchester United link at the bottom of the article? Would they do this if AIG sponsored any other club?
Seriously worrying that though. When insurance firms start going under, what happens to all the policies they've been underwriting?
You have a point and a good one; agree. When the airline XL went to the wall last week I would be surprised if a link to West Ham was provided by the BBC.
There was.
All those people are idiots: they almost certainly work for firms like the one I work for (I think one is even wearing one of our lanyards). We have a very, very firm policy that prevents us taking to the press. Breaking this can well lead to loosing your job. I did wonder why HR sent round an email reminding us all of this in the afternoon![]()
what are you guys complaining about? this is a great economy! "the fundamentals are sound"
[note the dripping sarcasm]
[senile] McCain declared in a new TV ad, "Our economy is in crisis. Only proven reformers John McCain and Sarah Palin can fix it" — though he also told voters in Jacksonville, Fla., "The fundamentals of our economy are strong." [/senile]
Can we call this a flip flop?
Of course not. Oh, and did you hear? McCain was a POW.
P-Worm
WSJ.com said:With strong encouragement from the Fed, Goldman Sachs Group Inc. and J.P. Morgan Chase & Co. are seeking to raise $70 billion to $75 billion in loans to help prop up AIG, according to people familiar with the situation. Word of AIG's efforts to borrow that much sent the stock market tumbling in the last hour of trading, which made Monday the worst percentage decline in six years.
Glass-Steagall was one of the many necessary measures taken by Franklin Delano Roosevelt and the Democratic Congress to deal with the Great Depression. Crudely speaking, in the 1920s commercial banks (the types that took deposits, made construction loans, etc.) recklessly plunged into the bull market, making margin loans, underwriting new issues and investment pools, and trading stocks. When the bubble popped in 1929, exposure to Wall Street helped drag down the commercial banks. In the absence of deposit insurance and other backstops, the results were devastating. Wall Streets failure helped destroy Main Street.
The policy response was to erect a wall between investment banking and commercial banking. It outlasted the Berlin Wall by a few decades. In the 1990s, as another bull market took hold, momentum built to overturn Glass-Steagall. Commercial banks were eager to get into high-margin businesses like underwriting hot tech stocks. Brokerage firms saw commercial banks, with their massive customer bases, as great distribution channels for stocks, mutual funds, and other financial products that they created. Generally speaking, the investment banks were the aggressors. In April 1998, Sandy Weill's Travelers, which owned Salomon Smith Barney, merged with Citicorp. The following year, Congress passed and President Clinton signed the Financial Services Modernization Act of 1999, known as the Gramm-Leach-Bliley Act. This law effectively deleted the prohibition on commercial banks owning investment banks and vice versa.
And now Washington Mutual had its credit rating cut to junk.
My stepmother has accounts w/WaMu.
Wish we still had the Glass-Steagall Act still in place.
The Gramm in the Gramm-Leach-Bliley Act is Phil Gramm—John McCain’s Ex chief economic adviser, and the man who called all of us “whiners” for being concerned about the economy.
These photos are eerie, I just watched "ENRON: The Smartest Guys in the Room" documentary the night before this happened. Same scenes of employees walking out w/ whatever they can fit in their box...looks of emptiness on their faces.
Wonder who got out of this deal filthy rich before the axe came down?
Re insurance firms, the policies are either sold on, or underwritten by others, or the insurance burden is shared, or the Government might be persuaded to step in, or the unfortunate public is sold down the river.
Cheers
UK has a compensation scheme, the FSCS, as a statutory fund of last resort for this situation. The public is unlikely to be sold down the river. Broadly it covers 90% of claims (100% for statutory insurances like 3rd party motor).
This article may be of some interest:
http://www.bloomberg.com/apps/news?pid=20601110&sid=aYbKSTZ5ZYpM
Truer words were never spoken.Insolvency doesn't wait for opening hours.
Thanks. Doesn't look good.This article may be of some interest:
http://www.bloomberg.com/apps/news?pid=20601110&sid=aYbKSTZ5ZYpM
You could go work for one of the big insolvency firms. I get the impression they're likely to be busy.Time to run to the public sector.
it must be ten's of thousands. if they all get layed off than that's a tragedy.