11/6- Obama signs bill; House passes UE extension 403-12**UE Final vote passes Senate 98-0**:Unemployment Update H.R. 3548: revenge of cloture vote passes Senate 97-1
Update: 11/6 Pres.Obama announced he signed the bill this morning. We will do a post updating state UE EU status next week.
Update: Obama to sign bill tomorrow (Friday)
The White House says President Barack Obama on Friday morning will sign a bill that expands a popular homebuyers tax credit and extends unemployment benefits.
Update: House passes UE extension 403-12:
The House of Representatives just passed the unemployment extension bill HR 3548 by a vote of 403-12. Coming so quickly on the heels of yesterday’s passage of the bill in the Senate, this is very welcome news to the thousands of unemployed Americans whose benefits have already run out or are close to it and desperately need this support from the federal government….
Yes the Third Rescue in 3 months!! And who devised the incredibly effective Plan to Rescue AIG in the first place?? Hmmnnn? Why our very own Secretary of the Treasury, that Wonder Boy we all know and love, Turbo Tax Tim Geithner!!
As former employees we follow with interest the trials and tribulations, the Perils of Pauline-esque series of AIG action….
FT is reporting AIG is now discussing a ‘controlled breakup’ with the government..
AIG and the US authorities are in advanced discussions over a radical restructuring that would split the stricken insurer into at least three government-controlled divisions in an attempt to keep it afloat, according to people close to the situation…
…The final shape of the new rescue attempt – the third government bail-out of AIG in five months – could still change as talks between company executives, US Treasury, the Federal Reserve and credit rating agencies continue.
In addition FOX won that FOIA case against Treasury on the AIG bailout forcing them to disclose what collateral the government is taking and how much cash they are giving AIG behind the scenes..
However, people close to the situation said AIG was on track to announce the overhaul on Monday, when it is expected to report a $60bn loss with its fourth-quarter results. The board is due to meet on Sunday.
Under the plan, the government would swap its current 80 per cent holding in the insurer for large stakes in three units – AIG’s Asian operations, its international life insurance business and the US personal lines business. A fourth unit, comprised of AIG’s other businesses and troubled assets, could also be formed.
In return, the authorities would relax the terms, or even cancel a large portion, of a $60bn five-year loan to AIG and convert $40bn-worth of preferred stock into shares, in an effort to ease the company’s burden.
So AIG has not divested itself of any of its many many units. Now as they prepare to report a stunning 60 Billion dollar loss, WOTS is they approached the government for more bailouts…the Neverending Story of AIG….
We are guessing someone realizes the public mood will not sustain this when there is more funding by the taxpayer coming down the pike for those 19 financial institutions currently undergoing Stress Tests...
Thus a last minute rush to sell their units and unsurprisingly, they are having trouble getting it done:
(AIG) may scrap a plan to repay a US$60bil US government loan by selling businesses, after failing to find enough promising bidders, said two people with knowledge of the matter.
Chief executive officer Edward Liddy, who took charge in September and unveiled the strategy the following month, had concluded it wouldn’t work, said the people, who spoke on condition of anonymity because the insurers’ talks with the government are private.
AIG is proposing additional ways to reduce the company’s debt to the US, including handing over stakes in some operations directly to the government, a person said.
The talks come as AIG, already propped up with a total of US$150bil of US aid, prepares to disclose a fourth-quarter loss of about US$60bil and seeks to fend off credit-rating cuts, the people said.
AIG hopes to raise $20 billion selling off American International Assurance, its Asia-based crown jewel. Singapore’s sovereign wealth fund Temasek Holdings, British insurer Prudential and Toronto-based Manulife Financial are all supposedly trying to get ahold of it.
Also on the block is international insurance heavyweight American Life Insurance Co. . MetLife is rumored to have offered $11.2 billion for the whole shebang, and French insurer AXA is said to be interested in all but the unit’s Japanese operations.
David Monfried, an AIG spokesman, confirmed that multiple bids are expected for the Asian business by Friday’s initial deadline and that a few others will be given more time to pony up their offers. “We’d rather give them a few extra days, than abide by some self-imposed deadline,” he said.
Will AIG live to issue worthless, system destabilizing, CDS’ another day? Only time will tell. Tune in tomorrow to The Days of AIG’s Lives….