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Thread: Embattled AIG puts headquarters on sales block

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    Default Embattled AIG puts headquarters on sales block

    NEW YORK (AP) ? AIG said Wednesday it's putting its downtown Manhattan headquarters and a nearby office building on the sales block.
    Mark Herr, spokesman for American International Group Inc., said the company is evaluating the sale of 70 Pine Street and 72 Wall Street as part of its efforts to boost operations.
    The potential sale, first reported by The New York Post, comes at a difficult time for the insurance conglomerate and in the New York real estate market. Prices for office buildings are falling in the wake of tight credit and downsizing in the financial industry.
    "I dare not even venture a guess on a price because this is exactly the type of asset lenders are avoiding like the plague right now," said Dan Fasulo, managing director at research firm Real Capital Analytics Inc.
    If AIG leaves the building, securing a new tenant would be nearly impossible in a recession, Fasulo said.
    The best option for a new owner is to redevelop the property into a hotel or residences, Fasulo said, which is also risky in the current climate.
    AIG also owns 175 Water Street in downtown Manhattan, according to Fasulo.
    The news comes as AIG faces outraged lawmakers after the company doled out $165 million in employee bonuses over the weekend. The company has received $170 billion in government bailout money.
    Edward Liddy, AIG's chairman and chief executive, acknowledged Wednesday that the company's multimillion-dollar bonuses were "distasteful" to many and had provoked a firestorm of wrath.
    "I share that anger," Liddy said in testimony prepared for Congress.
    Lawmakers from both parties expressed fury over the company's behavior. For the American public, AIG now stands for "arrogance, incompetence and greed," said Rep. Paul Hodes, D-N.H.

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    Default Re: Embattled AIG puts headquarters on sales block

    Quote Originally Posted by Schlottke View Post
    NEW YORK (AP) —
    The news comes as AIG faces outraged lawmakers after the company doled out $165 million in employee bonuses over the weekend. The company has received $170 billion in government bailout money.
    How the explanation of facts can put a whole different perspective on a story.

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    Olympic Champ therick's Avatar
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    Default Re: Embattled AIG puts headquarters on sales block

    Given that everyone knows that they're a motivated seller of all of their assets, which means they all know they can wait and get a better price as the vise closes, how exactly is this better for us the tax payor, or the financial sector as a whole compared to chapter 11?

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    Default Re: Embattled AIG puts headquarters on sales block

    AIG has not gone Chapter 11 because that would put a choak hold on their assets and ability to pay off Default Credit obligations. If that were to happen, the holders on those swaps would have to suck up the loss. There are too many big banks that would likely domino adding more Chapter 11 nad veirtually kill any attempt to restore the economy.

    As things appear now, the feds own AIG, will continue to fund future cash needs for default credit obligations and at some point in time, when AIG sells or closes all of the assets, the feds are going to holding a mammoth amount of bad debt.

    Keep in mind, most of this problem eminated form the federal instrumentalities, Fanny Mae and Freddy Mac. I sense the fed are owning up to their screw ups and by channeling the payments through AIG limits the admin is covering the bad losses of those dealing with the FMs. Without AIG as the channel, the Feds would be dolling out the cash here there and everywhere. Additionally, I doubt they could deal with the European Banks in the same, but the AIG channel allows them to take care of every bank that is in the middle of the problem.
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    Olympic Champ RYou's Avatar
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    Default Re: Embattled AIG puts headquarters on sales block

    To put thinkgs in a bit of perspective, AIG is looking to sell 2 of the 3 downtown buildings they own. In a good real estate market, the sale of the 3 buildings will not cover the value of the bonuses they paid out.
    Life's not the breaths you take, the breathing in and out that gets you through the day ain't what it's all about. It's the moments that take your breath away.

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    Default Re: Embattled AIG puts headquarters on sales block

    I say take the money from the sale and give us all our money back

    I know not really possible but would be nice.....

    Not to change the subject to taxes, but I heard somewhere that the Income tax was only supposed to be a temporary tax.....has anyone else heard that before?

    Getting lazy and don't feel like doing any research tonight when I should be preparing for a meeting tomorrow

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    Default Re: Embattled AIG puts headquarters on sales block

    Quote Originally Posted by Chance174 View Post
    I say take the money from the sale and give us all our money back

    I know not really possible but would be nice.....

    Not to change the subject to taxes, but I heard somewhere that the Income tax was only supposed to be a temporary tax.....has anyone else heard that before?

    Getting lazy and don't feel like doing any research tonight when I should be preparing for a meeting tomorrow
    I am pretty sure the constitution was amended to allow the income tax, so that is not a short term measure.

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    Default Re: Embattled AIG puts headquarters on sales block

    Quote Originally Posted by ODH View Post
    I am pretty sure the constitution was amended to allow the income tax, so that is not a short term measure.
    decided to do some research on this while I was eating lunch. found that the tax was originally started in 1862 and was ammended into the constitution in 1913 to make it a permanent tax.

    http://www.infoplease.com/ipa/A0005921.html

    Pretty interesting short article.

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    Default Re: Embattled AIG puts headquarters on sales block

    You obviously haven't been reading the abundant conspiracy literature that the income tax isn't really allowed by the consitution, or you recognized it for the bs it is.

    In my opinion, almanacs (what you consulted here) are usually a reliable source of general information.
    Last edited by matclone; 03-19-2009 at 03:24 PM.

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