Well, it seems the company Jason works for (AIG) is truly unraveling before our eyes. (I use these sewing terms because I'm learning how to sew and so have sewing on the mind - very original, I know). This week has been interesting for us as we are eagerly waiting on AIG to drop the bomb of their 4th quarter loss this upcoming Monday. As you may have heard in the news they are in talks with the government about possible options. Will they go bankrupt? Will they finally let go of the profitable jewel of their Property and Casualty division. The later is our hope since it would give them a shot at surviving the possible (and I think impending) collapse of the holding company.
Either way we think Jason will still have a job even if the parent company goes bankrupt on Monday but we don't know for sure what will happen. We will keep you posted as we get news...
Friday, February 27, 2009
Monday, February 23, 2009
AIG - Here we go again...
AIG Seeks More US Funds As Record Loss Looms
video: http://www.cnbc.com/id/15840232?video=1043417187
Posted By: David Faber CNBC Anchor and Reporter
CNBC.com
23 Feb 2009 04:36 PM ET
American Insurance Group, the insurance giant that is 80-percent owned by the US government, is in discussions with the government to secure additional funds so it can keep operating after next Monday, when it will report the largest loss in U.S. corporate history, CNBC has learned.
Sources close to the company said the loss will be near $60 billion due to writedowns on a variety of assets including commercial real estate. That massive loss is likely to spur downgrades in its insurance and credit ratings that will force AIG to raise collateral that it doesn't have.
In addition, if AIG's book value falls below a certain level, as it seems certain to do, it will trigger default in certain of its debt instruments, say people familiar with the situation.
All of this adds up to a huge headache for the Federal Reserve and Treasury, which have already provided over $150 billion of assistance to AIG.
Talks between the government and AIG are focussed on how the company can swap some of the debt held by the government for equity in AIG.
The problem is that the government's ownership stake cannot exceed its current 79.9 percent, leaving officials to try and find a creative way to transfer value to the US in exchange for AIG reducing its debt so that it can then borrow more from the government to meet its collateral calls.
AIG has borrowed roughly $40 billion from a $60 billion credit facility provided it by the Federal Reserve Bank of New York. If it can find a way to pay that down by swapping equity, it hopes to take it back up to a level that will allow it to meet its collateral and capital calls.
AIG's board is scheduled to meet this Sunday night in hopes of hammering out an agreement with the government. But in case it can't, AIG's lawyers at Weill Gotschal are preparing for the possibility of bankruptcy.
(Watch the accompanying video for more...)
That seems unlikely, but last November, the government took control of many of AIG's credit default swaps and so a bankruptcy of the holding company might not pose the systemic risk it once did.
AIG officials have not offered comment, though a source told Reuters that the company has no plans to file for bankruptcy. Officials at the Federal Reserve Bank of New York have not returned calls.
video: http://www.cnbc.com/id/15840232?video=1043417187
Posted By: David Faber CNBC Anchor and Reporter
CNBC.com
23 Feb 2009 04:36 PM ET
American Insurance Group, the insurance giant that is 80-percent owned by the US government, is in discussions with the government to secure additional funds so it can keep operating after next Monday, when it will report the largest loss in U.S. corporate history, CNBC has learned.
Sources close to the company said the loss will be near $60 billion due to writedowns on a variety of assets including commercial real estate. That massive loss is likely to spur downgrades in its insurance and credit ratings that will force AIG to raise collateral that it doesn't have.
In addition, if AIG's book value falls below a certain level, as it seems certain to do, it will trigger default in certain of its debt instruments, say people familiar with the situation.
All of this adds up to a huge headache for the Federal Reserve and Treasury, which have already provided over $150 billion of assistance to AIG.
Talks between the government and AIG are focussed on how the company can swap some of the debt held by the government for equity in AIG.
The problem is that the government's ownership stake cannot exceed its current 79.9 percent, leaving officials to try and find a creative way to transfer value to the US in exchange for AIG reducing its debt so that it can then borrow more from the government to meet its collateral calls.
AIG has borrowed roughly $40 billion from a $60 billion credit facility provided it by the Federal Reserve Bank of New York. If it can find a way to pay that down by swapping equity, it hopes to take it back up to a level that will allow it to meet its collateral and capital calls.
AIG's board is scheduled to meet this Sunday night in hopes of hammering out an agreement with the government. But in case it can't, AIG's lawyers at Weill Gotschal are preparing for the possibility of bankruptcy.
(Watch the accompanying video for more...)
That seems unlikely, but last November, the government took control of many of AIG's credit default swaps and so a bankruptcy of the holding company might not pose the systemic risk it once did.
AIG officials have not offered comment, though a source told Reuters that the company has no plans to file for bankruptcy. Officials at the Federal Reserve Bank of New York have not returned calls.
Wednesday, February 18, 2009
Peter and the Wolf Concert
I thought Ja and Aunt Missi would enjoy seeing a clip of our Peter and the Wolf concert. Bring back any memories??
Tubby the Tuba mystery...
A week ago we received in the mail a wonderful book - Tubby the Tuba. I never heard of it before and didn't realize it is a classic and a huge hit with children around the world. I thought maybe Vin wouldn't be so into it yet because it is a long book for a two year old to sit through. But he sat through the entire thing and asked me to read it again when I was done. Then the rest of the day he ran around the house saying Tubby Tuba with his little toddler accent.
Who sent us this wonderful book you may ask? Well, we have no idea. If you are the Tubby Tuba sender please step forward so we may properly thank you for this very cool gift.
Who sent us this wonderful book you may ask? Well, we have no idea. If you are the Tubby Tuba sender please step forward so we may properly thank you for this very cool gift.
Peter and the Wolf - Pittsburgh Symphony Tiny Tots Concert
Meeting Ja in the lobby of his building with two very tired boys after the concert. I don't know why I'm standing that way.
Last Thursday I took the boys down to a Tiny Tots Concert. This is a free concert the Pittsburgh Symphony puts on for children under 3 years. They offer it as a free community event and I was so excited to take Vin. I was so excited in fact, that I decided that instead of driving downtown I would take the train. It was the day we were having wind gusts of 40-50 mph so that made things interesting.
The symphony did Peter and the Wolf which is a childhood favorite of Jason's so it was neat for Vin to experience it. He made it about 30 minutes into the performance before falling asleep on my lap (Luca fell asleep as soon as we sat down). So I had both boys sleeping on me in a theatre where it felt like it was a thousand degrees, hence my dewy appearance in the picture above.
After the concert we walked over to Jason's building and met him for lunch.
A very lovely outing indeed!
Saturday, February 14, 2009
Friday, February 13, 2009
Birthday Day
Ja took the day off and the four of us had a great time. We took Vin out for a birthday pancake breakfast, then went to storytime at the library and then to an indoor playground.
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