by Calculated Risk on 3/01/2009 10:50:00 AM

First a repeat of Eric's great AIG cartoon! Click on cartoon for larger image in new window. Cartoon from Eric G. Lewis

From the WSJ: Rating Agencies Endorse Revised AIG Bailout

Major credit rating agencies have signed off on the latest revamp of American International Group Inc.'s $150 billion government rescue package ... Both Standard & Poor's and Moody's Investors Services have quietly endorsed the terms of the revised bailout ...

The agreement clears the way for the insurer's board to give its final approval when it meets on Sunday. AIG's latest restructuring ... is expected to be announced with the insurer's results on Monday.

... Many details of the new plan aren't clear but ... it will result in a complete reconfiguration of AIG. ... The revised plan relies on a series of complicated financial maneuvers that will reduce AIG's interest and debt burdens, while also deepening government involvement and taxpayer exposure.

One aspect of the plan is clear - taxpayers will be more exposed.

by Calculated Risk on 3/01/2009 02:08:00 AM

From Reuters: Exclusive: AIG near deal on new terms of bailout (ht Brad)

American International Group Inc is close to a deal with the U.S. government ... The revised AIG agreement is expected to include an additional equity commitment of about $30 billion, more lenient terms on an existing preferred investment, and a lower interest rate on a $60 billion government credit line ...

AIG will also give the U.S. Federal Reserve ownership interests in American Life Insurance (Alico), ... [and] American International Assurance Co (AIA) in return for reducing its debt ... The board ... is due to meet on Sunday to vote on the deal ...

It sounds like the deal will be announced on Monday.

by Calculated Risk on 2/28/2009 11:59:00 PM

Just a few comments on comments ...

I'm working with JS-Kit. They have moved all the old comments over to the new database.

Hopefully we can have the default be "flat". And we can add a refresh (that takes the user to the bottom).

JS-Kit will also be adding the following features:

number of users on-line, this is in discussion and has no ETA date

no preview button (comment form is WYSIWYG), but they are adding an "edit" button so users can change their comments later.

visitor URL in comment will be added soon.

number of comments within pop-up will be added.

Best to all. And thanks for your patience.

by Calculated Risk on 2/28/2009 08:29:00 PM

For your Saturday evening ...

by Calculated Risk on 2/28/2009 05:08:00 PM

From The Times: HSBC takes £17bn hit on bad loans

HSBC is to own up to the full horror of its American sub-prime business, Household, when it unveils a £7 billion goodwill write-off in addition to a £17 billion provision against rising bad loans.

The provisions will be announced tomorrow alongside a heavily discounted £12 billion rights issue – the biggest ever held in Britain – and a dividend cut ...

The fundraising will make HSBC the strongest bank in the world that has not received a cash injection from the state. Its tier-one ratio, a key measure of financial strength, will rise from 8.5% to 10.5%. Analysts say it will provide a $40 billion (£28 billion) buffer against further bad debts.

Oh, the horror! The confessional remains busy, and AIG will be dropping by on Monday.