{"id":363,"date":"2008-09-15T18:47:56","date_gmt":"2008-09-15T22:47:56","guid":{"rendered":"http:\/\/www.jasetaro.com\/blog\/?p=363"},"modified":"2008-09-16T13:03:59","modified_gmt":"2008-09-16T17:03:59","slug":"bloody-monday","status":"publish","type":"post","link":"https:\/\/www.jasetaro.com\/blog\/2008\/09\/15\/bloody-monday\/","title":{"rendered":"Bloody Monday…"},"content":{"rendered":"

The dust is starting to settle on what has been very ugly day on Wall Street. It’s not over by any stretch of the imagination… It’s going to take several days if not weeks for the markets and Main Street to fully digest the implications of Merrill Lynch’s shotgun marriage to Bank of America, Lehman Brothers bankruptcy filing and AIG’s troubles.<\/p>\n

I don’t have any particularly interesting insights in to the situation all I can say is this:<\/p>\n

As traumatic as today’s events have been for the employees, investors and clients of Lehman Brothers, Merrill Lynch and AIG they had to be allowed to happen… If our financial system is going to have any kind of integrity financial institutions have to be allowed fail. The government can’t keep stepping in and bailing these institutions out.<\/p>\n

The Wall Street Journal has complete coverage here<\/a> (requires subscription).<\/p>\n

If you have a life-insurance, auto or homeowners policy through AIG, you might want to look at this MarketWatch piece<\/a>:<\/p>\n

It’s unclear at this point how AIG will ultimately fare, but the good news for consumers is that each state has a guaranty association in place to protect policyholders in the event of an insurer’s failure.<\/p>\n

For its part, AIG says its insurance subsidiaries, all of which are wholly-owned, are “well capitalized and they meet or exceed local regulatory capital requirements,” said Joe Norton, an AIG spokesman. “These companies continue to operate in the normal course of business to meet our obligations to policyholders.” See full story.<\/p>\n

But even if AIG — or any other insurer — faced insolvency, state guaranty associations exist to protect consumers.<\/p><\/blockquote>\n

for a little reassurance.<\/p>\n

Ed Morrissey takes a look at the politics here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

The dust is starting to settle on what has been very ugly day on Wall Street. It’s not over by any stretch of the imagination… It’s going to take several days if not weeks for the markets and Main Street to fully digest the implications of Merrill Lynch’s shotgun marriage to Bank of America, Lehman […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[26,7],"tags":[128,126,127,125],"class_list":{"0":"post-363","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-economy","7":"category-politics","8":"tag-aig","9":"tag-bank-of-america","10":"tag-lehman-brothers","11":"tag-merrill-lynch","12":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/pfpI7-5R","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":1811,"url":"https:\/\/www.jasetaro.com\/blog\/2009\/03\/26\/let-the-exodus-begin\/","url_meta":{"origin":363,"position":0},"title":"Let the Exodus Begin…","author":"Jeff","date":"March 26, 2009","format":false,"excerpt":"Jake DeSantis may have been the most public buts he's not the only one at AIG Finacial Products who's cleaning out his desk: NEW YORK (Reuters) - Several more employees are leaving the controversial financial products unit that brought American International Group Inc to its knees last year, according to\u2026","rel":"","context":"In "Economy"","block_context":{"text":"Economy","link":"https:\/\/www.jasetaro.com\/blog\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1795,"url":"https:\/\/www.jasetaro.com\/blog\/2009\/03\/25\/nyt-dear-aig-i-quit\/","url_meta":{"origin":363,"position":1},"title":"NYT: Dear A.I.G., I Quit!","author":"Jeff","date":"March 25, 2009","format":false,"excerpt":"I hope Barack Obama, Timothy Geithner, Nancy Pelosi, Barney Frank, Chris Dood, Andrew Cuomo, Richard Blumenthal and all the pundits who have lead the AIG lynch mob are happy now: The following is a letter sent on Tuesday by Jake DeSantis, an executive vice president of the American International Group\u2019s\u2026","rel":"","context":"In "Culture"","block_context":{"text":"Culture","link":"https:\/\/www.jasetaro.com\/blog\/category\/culture\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3011,"url":"https:\/\/www.jasetaro.com\/blog\/2009\/11\/19\/wsj-geithner-under-fire-amid-frustration-on-economy\/","url_meta":{"origin":363,"position":2},"title":"WSJ: Geithner Under Fire Amid Frustration on Economy","author":"Jeff","date":"November 19, 2009","format":false,"excerpt":"Normally I'd say the calls for Treasury Secretary Tim Geithner's resignation were just hot air but given the recent disclosures about his role in AIG bailout while President of the New York Federal Reserve Bank, I suspect this is more than just normal political blustering: Snowballing frustration about the economy\u2026","rel":"","context":"In "Economy"","block_context":{"text":"Economy","link":"https:\/\/www.jasetaro.com\/blog\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3151,"url":"https:\/\/www.jasetaro.com\/blog\/2010\/01\/07\/bloomberg-geithners-fed-told-aig-to-limit-swaps-disclosure\/","url_meta":{"origin":363,"position":3},"title":"Bloomberg: Geithner’s Fed Told AIG to Limit Swaps Disclosure","author":"Jeff","date":"January 7, 2010","format":false,"excerpt":"In a sane world Tim Geithner's tax troubles would have kept him from being confirmed as Treasury Secretary. Unfortunately, we don't live sane and those tax troubles pale in comparison to what we're learning about the Geithner led Federal Reserve Bank of New York's role in the AIG bailout: The\u2026","rel":"","context":"In "Culture of Corruption"","block_context":{"text":"Culture of Corruption","link":"https:\/\/www.jasetaro.com\/blog\/category\/culture-of-corruption\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1059,"url":"https:\/\/www.jasetaro.com\/blog\/2008\/11\/26\/the-25-billion-question\/","url_meta":{"origin":363,"position":4},"title":"The $25 Billion Question","author":"Jeff","date":"November 26, 2008","format":false,"excerpt":"Holman W. Jenkins Jr. has an excellent Op Ed piece in today's Wall Street Journal. Mr. Jenkins ask the one question that no one Congress dares ask... Why is it Ford and GM can build viable auto businesses all over the world but not in North America? A Car Wreck\u2026","rel":"","context":"In "Economy"","block_context":{"text":"Economy","link":"https:\/\/www.jasetaro.com\/blog\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1695,"url":"https:\/\/www.jasetaro.com\/blog\/2009\/03\/17\/the-hits-keep-coming-chris-dodd-was-for-aig-bonuses-before-we-was-against-them\/","url_meta":{"origin":363,"position":5},"title":"The Hits Keep Coming: Chris Dodd Was For AIG Bonuses Before He Was Against Them","author":"Jeff","date":"March 17, 2009","format":false,"excerpt":"From Fox Business (emphasis mine): Senator Chris Dodd (D-Conn.) on Monday night floated the idea of taxing American International Group (AIG: 0.9194, 0.1393, 17.86%) bonus recipients so the government could recoup some or all of the $450 million the company is paying to employees in its financial products unit. Within\u2026","rel":"","context":"In "Economy"","block_context":{"text":"Economy","link":"https:\/\/www.jasetaro.com\/blog\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/posts\/363","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/comments?post=363"}],"version-history":[{"count":0,"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/posts\/363\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/media?parent=363"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/categories?post=363"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/tags?post=363"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}