Don't cry for me, Argentina...

[randomness]

According to Brad Setser at the Council on Foreign Relations, the "$155b in [Lehman's] outstanding bonds significantly exceeds Argentina’s outstanding stock of bonds at the time of its default".

But hey, that's yesterday's news, right?

Today's news is that the Federal Reserve caved, and is putting up $85 billion to rescue A.I.G., in exchange for an 80% stake in the company. The Fed's "no bailout" policy lasted all of two days. Sucks to be you, Lehman Brothers.

We the people have just bought the biggest insurer (by assets) in America.

I wonder what we'll get the chance to buy next.

Edit: The FT says AIG is the "world’s largest insurer by assets".

Comments

[belfrynotes.livejournal.com]

I read that Hank Greenberg, the guy who founded AIG but was ousted a couple of years ago, has seen his net worth go down by something like $19 billion since the beginning of the year. This is apparantly comparable to the GNP of Bahrain.

[r-ness.livejournal.com]

Hank Greenberg has be one of the angriest people on Wall Street this week. Certainly he has good reason to be angry.

Bloomberg reports:

Greenberg was ``bewildered'' because AIG refused his help after a 31 percent drop on Sept. 12 sparked concerns that the firm would run short of cash, he said in the letter to CEO Robert Willumstad, who will be replaced in the takeover.

Here's an excerpt from his letter to AIG chairman Robert Willumstad, quoted in the Washington Post:

"Despite repeated assurances from management and the company that everything was under control, it is now clear that nothing was under control," he wrote. "Since you became Chairman of AIG, you and the Board have presided over the virtual destruction of shareholder value built up over 35 years."