FEATURE ARTICLE

Powell Gammill
Powell Gammill


 
 
Date:
Subject: Federal Reserve

In looking over the articles this morning over at The Market Ticker I noticed he has a story titled "More Inside Trading? (AIG)". Here is your answer Karl I submitted this story on 8/6/09 the WSJ had this story available on that date even though it was dated 8/\'7/09 from the WSJ... AIG Breakup Is Fee Bonanza "Wall Street banks and lawyers could collect nearly $1 billion in fees from the Federal Reserve Bank of New York and American International Group Inc. to help manage and break apart the insurer, according to a Wall Street Journal analysis. That would represent one of Wall Street\'s biggest paydays -- four times the fees paid to break up AT&T Corp. in 1996, and nearly double those paid for Visa USA\'s 2008 initial public offering, the largest U.S. IPO ever. Wall Street banks and lawyers could collect nearly $1 billion in fees from the Federal Reserve Bank of New York and American International Group Inc. to help manage and break apart the insurer, according to a Wall Street Journal analysis. Yesterday when news reports were circulating about the veracity of the AIG trades I co they were posted here and I commented " I believe I know why" when posting the article from CNN titled "Rolling the dice on AIG" who was reporting "The taxpayer-owned insurer, much derided for its blunders in the derivatives casino, becomes a highly sought-after lottery ticket. and.. Less than a year after it nearly brought down the financial system with a misguided derivatives bet, AIG is everyone\'s favorite lottery ticket. Shares in the troubled taxpayer-owned insurer have nearly doubled in the days leading up to Friday morning\'s scheduled release of second-quarter earnings. It is a flurry of speculative enthusiasm that boggles the mind." and.. Even so, given the scope of AIG\'s problems -- it reported a $99 billion loss last year and survived last fall\'s market meltdown thanks only to $180 billion in federal support -- it\'s hard to square the rally with the company\'s grim outlook. "The speculators have jumped in on this one, like all the other dregs of the state," said Joe Saluzzi of institutional broker Themis Trading. "This is truly a phenomenon," Tabacco said. "I don\'t know what is going on, but it appears to be the new game in town." If the WSJ had this information available to the public the night before the stock went wild I would assume others did as well. They were well aware there was big $$$ to be made off of the taxpayers backs. I do not know if that qualifies as having first been reported here on Freedoms Phoenix but I have not come across any other source putting the pieces together.