Speculative selling drove the pound down below the $1.50 watermark, it's weakest level since May09 following weekend opinion polls that there could be a "hung Parliament" (in which no one party has a majority of seats). This was compounded by the news of Prudential buying AIG's Asian business for $35bn (of which $25bn will be in cash (70%) for which it would have to sell sterling to raise funds.
GBPUSD is known as cable (the number of dollars you need to purchase one pound). An increase in cable indicates a strengthening of sterling (with respect to the dollar).
Showing posts with label AIG. Show all posts
Showing posts with label AIG. Show all posts
Monday, 1 March 2010
Monday, 2 March 2009
FTSE loses billions of pounds (~helprequest(_AIG, _USGovt, 2009).)
down(_FTSE, percent(5.3), 3625). % lowest since outbreak of Iraq war May03
down(_HSBC, percent(10), pence(399)).
down(_Lloyds, percent(15), pence(49.4)).
helprequest(_AIG, _USGovt, 2008) -> bailout(_AIG, usd(150bn), 2008).
helprequest(_AIG, _USGovt, 2009) -> bailout(_AIG, usd(30bn), 2009). % emerg.aid
countries(_AIG, 130), customers(_AIG, 74m).
max( aircraft_owner(X), world). ? X = _AIG.
stock(_AIG, dollars(46), 2008), stock(_AIG, cents(42), 2009).
down(_HSBC, percent(10), pence(399)).
down(_Lloyds, percent(15), pence(49.4)).
helprequest(_AIG, _USGovt, 2008) -> bailout(_AIG, usd(150bn), 2008).
helprequest(_AIG, _USGovt, 2009) -> bailout(_AIG, usd(30bn), 2009). % emerg.aid
countries(_AIG, 130), customers(_AIG, 74m).
max( aircraft_owner(X), world). ? X = _AIG.
stock(_AIG, dollars(46), 2008), stock(_AIG, cents(42), 2009).
Monday, 10 November 2008
GM Stock Lowest in 55 years - Target Price: Zero, AIG eats more government cash
GM's Securities
Fitch Ratings has warned of GM's "rapidly diminishing liquidity position" and DB has set a target price of zero for the stock. (aside: check out DB's art website here, DB owns the world's biggest corporate collection of art).
STOCK
GM has dropped from $33 to $3 this year, following DB's downgrade. The short interest on GM stock is currently 93.5 million - short interest is the number of shares of a stock that have been sold short but not yet covered (by depositing funds) or closed out.
OPTIONS
GM's most active contracts were November $3 puts. Their value more than doubled to 70 cents.
DEBT
GM's debt is trading at "stressed" prices. "Stressed" is basically one level above "distressed".
Will federal bank-bailout funds be opened up to automakers?
The Treasury announced it will pay $40 billion for another 2% stake in AIG (preferred shares), which has posted a $24.47 billion loss for Q3. The term of the loan has been extended from 2 years to 5 years. AIG was involved in insurance of CDOs.
The ignominious position of GM will force management to reflect on its history. Founded on September 16, 1908 in Flint, Michigan (now hq'ed in Detroit) as a holding company for Buick, controlled by William C. Durant of Boston. He lost control of GM in 1910 to a banker's trust due to excess debt taken on in its acquistions followed by the collapese of new vehicle sales. A few years later he started Chevrolet, and reassumed control of GM by building up secret stakes.
Fitch Ratings has warned of GM's "rapidly diminishing liquidity position" and DB has set a target price of zero for the stock. (aside: check out DB's art website here, DB owns the world's biggest corporate collection of art).
STOCK
GM has dropped from $33 to $3 this year, following DB's downgrade. The short interest on GM stock is currently 93.5 million - short interest is the number of shares of a stock that have been sold short but not yet covered (by depositing funds) or closed out.
OPTIONS
GM's most active contracts were November $3 puts. Their value more than doubled to 70 cents.
DEBT
GM's debt is trading at "stressed" prices. "Stressed" is basically one level above "distressed".
Will federal bank-bailout funds be opened up to automakers?
The Treasury announced it will pay $40 billion for another 2% stake in AIG (preferred shares), which has posted a $24.47 billion loss for Q3. The term of the loan has been extended from 2 years to 5 years. AIG was involved in insurance of CDOs.
The ignominious position of GM will force management to reflect on its history. Founded on September 16, 1908 in Flint, Michigan (now hq'ed in Detroit) as a holding company for Buick, controlled by William C. Durant of Boston. He lost control of GM in 1910 to a banker's trust due to excess debt taken on in its acquistions followed by the collapese of new vehicle sales. A few years later he started Chevrolet, and reassumed control of GM by building up secret stakes.
Wednesday, 8 October 2008
AIG taps additional reserves from the Federal Reserve
AIG, America's largest insurer, announced it is borrowing more funds from the Fed. "They need more liquidity than they thought" remarked an analyst at William Blair & Co. The money will go towards helping AIG cover requests from clients to redeem borrowed securities.
But can AIG be trusted with the bailout money?
Days after the bailout it was reported AIG spent $440,000 on a California retreat involving banquets, spa treatments and golf.
These expenses are being subjected to some hard-nosed analysis by New York Attorney General Andrew Cuomo (the function of the Attorney General is to act as the chief legal officer of the State, protecting consumers, investors and businesses throughout the state). In addition, $19m in payments to former AIG chief executive, Martin Sullivan, have been frozen as AIG plays ball with the investigations - which will also review executive compensation.
But can AIG be trusted with the bailout money?
Days after the bailout it was reported AIG spent $440,000 on a California retreat involving banquets, spa treatments and golf.
These expenses are being subjected to some hard-nosed analysis by New York Attorney General Andrew Cuomo (the function of the Attorney General is to act as the chief legal officer of the State, protecting consumers, investors and businesses throughout the state). In addition, $19m in payments to former AIG chief executive, Martin Sullivan, have been frozen as AIG plays ball with the investigations - which will also review executive compensation.
Tuesday, 16 September 2008
Fed Plans Rescue of AIG ($85bn bailout/NATIONALISATION)
Following bailout of Freddie Mac and Fannie Mae, the Fed plans to stave off bankruptcy of AIG, by providing $85bn in funding in exchange for 80% stake in the insurer. US is following Venezuela in nationalising financial institutions.
AIG owns 50% of City Airport, located in Royal Docks, East London, less than 3 miles from Canary Wharf . AIG bought the airport from Irish financier Dermot Desmond in October 2006. It sold its stake to GIP (an infrastructure fund founded by Credit Suisse and General Electric), in Sept 2008.
AIG owns 50% of City Airport, located in Royal Docks, East London, less than 3 miles from Canary Wharf . AIG bought the airport from Irish financier Dermot Desmond in October 2006. It sold its stake to GIP (an infrastructure fund founded by Credit Suisse and General Electric), in Sept 2008.
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