Summary
Implications: 1.The government , simply, cannot agree to extend credit to this firm with Management intact. 2.Management has shown a clear pattern of ineptness that has created a pattern of destruction of one of America"s Greatest and Largest Firms! Poor Management and Undercapitalization!!!! 3.An illustration expressing the extreme stress racking the company and expanding, globally!!! 4.The Financial Statements illustrate a deficiet of almost $50 Billion of distressed assets and a monumental governmental debt. 5.The Market Value of the firm has depressed from $180 billion in 2007 to the , now, $5 billion.A gaining los that a Mark to the Market May Not Salvage! 6.The ONLY OPTION: Keep AIG afloat while it reemerges as a "Stand -Alone Private Company and gains the ability to Work-Out a Solution to Debt related issues!!!!!
Analysis
Commentary:
1.Loyds of London has been forced to raise premiums amongst it's largest best performing companies to compensate for such an event!
2.Many firms will be forced to raise premiums , while many others will be forced to reduce their exposure to the market.
3. Reinsurance is well-positioned to benefit from primary companies come to terms with a weakened Balance Sheet!
4.Most will increase their underwriting capacity to meet the underlying demand. Viability is , yet, to be assessed?
5.Many firms' client base is coming to the realization ,that , perhaps, it may be in the Best Interest of all to Spread the Risk Base!!
6.Cash May Be accessed in a relatively short time.Liquidity, loss reserves and capital are not major issues." A Potential Hazard?"!!!!
