Posted by
alfredlester on Friday, March 11, 2011 1:42:48 PM
NEW YORK (MarketWatch) - Who Said bailouts Were Easy?
American International Group Inc.. &&9;S offer to repurchase securities from The Federal Reserve Will require a balancing act Between the Health of the bailed-out company and Taxpayer Interests.
The Fed Said It Is Reviewing one year Friday by AIG offer to buy back $ 15.7 Billions in mortgage-related securities from Maiden Lane II, The Investment portfolio set up to manage distressed assets from AIG. Read full story and we offer GVA Fed response.
The New York Times Reported That AIG IS Offering about 50 cents On The face value of the Securities. The company Would Believe The securities pay out More Than The Low-Yielding, goal safer, Received INSTEAD IT security, the Times Reported.
AIG Told That the Fed at current valuations, the Fed Would Receive A $ 1.5 billion profit on ITS Maiden Lane II investment.
Icts In response, the Fed IS Cautious.It Said It "has been" aware Of The AIG offer for a while, and "any decision was possible disposal of assets thesis Will Be Made In A Way That Maximize The Proceeds To The Taxpayer and consist That Is With The goal of Fostering Financial Stability no fax needed payday loans. "
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That&&9;s the right approach ", Even If It Means Delaying&&9;s The Government of liquidation icts More Than 90% stake in AIG. The Fed, BlackRock Inc. Which Has Hired. bailout to value-related portfolios, Should Be in no rush If There&&9;s a strong Possibility The Securities Will Increase in value.
The Fed May Be Better Off If They Keeping the securities are undervalued Indeed, But It Will Have to weigh aussi The Potential Benefit of icts AIG selling stake.A Stronger AIG bolstered by the Maiden Lane II securities, Could Provide A Greater return.
Taxpayers are DEPENDING ON the Fed&&9;s decision-makers to get this one right.
- David Weidner
MarketWatch First Take: AIG and the Fed heading for showdown