Do you believe? AIG spokesman said,

古树

AIG spokesman Nicholas Ashooh said,  “AIG's payments on credit-default swaps tied to Lehman Brothers Holdings Inc. will be about $6.2 million.”

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AIG Suspends Lobbying, Cancels 160 Events Costing $80 Million

By Hugh Son

Oct. 20 (Bloomberg) -- American International Group Inc., the insurer bailed out by the U.S., suspended all its lobbying and canceled about 160 events with a total cost of $80 million after lawmakers criticized the company's spending.

The insurer will still monitor legislation ``to determine what impact it might have on us,'' said Nicholas Ashooh, a spokesman for New York-based AIG. Congressional members lambasted AIG for hosting a $440,000 gathering at a California resort days after the $85 billion federal bailout.

``We reviewed all meetings we could find,'' Ashooh said. ``The challenge is to find other ways of operating that are less expensive.''

AIG, once the world's largest insurer, is adjusting to its new majority owner, the U.S. government. The company, which has to sell units to repay the loan, agreed with New York Attorney General Andrew Cuomo last week to halt a $10 million severance payment to former Chief Financial Officer Steven Bensinger and to help Cuomo potentially retrieve other executives' compensation.

Separately, AIG's payments on credit-default swaps tied to Lehman Brothers Holdings Inc. will be about $6.2 million, Ashooh said.

AIG's cost of protecting the debt of the failed investment bank ``has been grossly overstated by some,'' he said.

The suspension of lobbying was reported earlier today by the Wall Street Journal.

To contact the reporter on this story: Hugh Son in New York at [email protected]

Last Updated: October 20, 2008 16:16 EDT

 

http://www.bloomberg.com/apps/news?pid=20601087&sid=a9YwPHdKDAB0&refer=home

bigbadwolf

Someone mentioned that after hedge, an insurer in general only has 2% exposure of the face value of the CDS, although 6.3m sounded very low to me. [ 本帖最后由 bigbadwolf 于 2008-10-20 21:17 编辑 ]

stockhq

maybe that's the reason for today's rally.

原帖由 古树 于 2008-10-20 20:44 发表 Normal 0 false false false MicrosoftInternetExplorer4 st1\:*{behavior:url(#ieooui) } /* Style Definition ...

silverlake

read that too, 6.2 M is nothing for AIG.

Still don't understand why Cramer said those in last week, he scared investors.  He should clearly know how much AIG is going to pay for LEH CDS.