Bloomberg (February 23)
“Beijing’s interventions in the economy don’t always merit applause, but the government’s unprecedented seizure of Anbang Insurance Group Co. deserves a round. Anbang was a toxic threat to China’s financial system.” With total assets estimated to be “a staggering 3.4 percent of China’s GDP,” Anbang had the potential to deliver a shock “comparable to Lehman Brothers Holdings Inc. or American International Group Inc. in the U.S.” Chinese authorities have “nipped a potential disaster in the bud.”
Tags: AIG, Anbang, Assets, Beijing, China, Economy, Financial system, Interventions, Lehman Brothers, Threat, Toxic
Wall Street Journal (May 17)
“Activist investors, a perennial nuisance for chief executives, are becoming an existential threat. Since January, they have helped push out the leaders of three high-profile S&P 500 companies” (AIG, CSX Corp. and Arconic Inc.). Moreover, “they are gunning for the CEOs at other companies,” such as Buffalo Wild Wings Inc. and Avon Products Inc. “So far in 2017, activists have started nine campaigns targeting top management, the fastest pace on record.”
Washington Post (April 24)
The federal government still owns a quarter of GM’s common stock and over 90% of AIG. These purchases and other bailout measures saved both the automaker and the insurer. Some may urge the U.S. Government to hold its shares until a better market arrives. AIG’s stock price has fallen 25% since the start of 2011 and GM’s has fallen by $3 per share since its 2010 IPO. Earlier sales could have reaped more for the government. Later sales might as well, but “federal profit maximization was not the main purpose of the AIG or GM rescues.” The Post thinks it is time for the government to sell its remaining shares. GM and AIG should each be required to again compete as a private enterprise.
The federal government still owns a quarter of GM’s common stock and over 90% of AIG. These purchases and other bailout measures saved both the automaker and the insurer. Some may urge the U.S. Government to hold its shares until a better market arrives. AIG’s stock price has fallen 25% since the start of 2011 and GM’s has fallen by $3 per share since its 2010 IPO. Earlier sales could have reaped more for the government. Perhaps later sales could too, but “federal profit maximization was not the main purpose of the AIG or GM rescues.” The Post thinks it is time for the government to sell its remaining shares. GM and AIG should each be required to again compete as a private enterprise.
Tags: AIG, Bailout, GM, Share sale, U.S.
