Is the too big to fail failing??

A former employee, who was laid off last week, tells WDBJ7 everyone in those offices have either lost or are losing their jobs.

The Christiansburg office of the American General Life and Accident Insurance Company looks abandoned.

This time last week, it was fully staffed.

But a former employee tells us last Thursday at 11:00 a.m. employees were told AIG was closing almost all of it's financial network offices in the U.S.

www.wdbj7.com...

If you read the article further you will find that they are closing all the offices except four, which happen to be the ones that work with the chinese markets.
Anyone have any insight to this, because well, I am not sure what to make of this. They got this huge bailout not that long ago because well our economy would just crumble if they weren't around, and now they are closing up shop in the states? Are our markets just that unstable?

a reply to: dawnstar

I had a feeling that ING...or, ING Direct, would go "directly" out of business a long time ago! Predominantly once I saw their first commercial I thought it was going to be a joke. Seeing orange color everywhere wasn't also the best choice to be honest.

With stupid commercials like this one, and others, it was bound to fold...shows you the IQ level of the executives




Such poor branding...

a reply to: dawnstar

Can you please provide the source for this?


So they get bailed out with tax dollars, and now years later... closing tons of offices? What the heck?

ETA: Found it www.wdbj7.com...

Bailout makes me think of a sinking ship and giving the sailors extra buckets to get rid of the water without fixing the gaping hole in the ship allowing the water to pour in.

Would it be such a terrible thing in the long term if the whole economic system collapses due to the stupidity and greed of those in control of it so that we can start again with a new improved system ?

It seems these financial leeches are either too stupid or simply don't care if they screw up because they have the arrogance to expect to be bailed out every time they fail.

In any other sector if a business fails, that's it, game over but in finance you get as many go's at failing as you like

a reply to: FamCore

sorry to make you search, forgot to include the link. fixed it by the way since it's nice to have the source when quoting articles...
that was my reaction....
what the heck?? what is more what the heck is they are only keeping the few open that are dealing with the chinese markets.

Also, for the get go it sounded like someone wanted to play the "get rich quick" scheme!

Maybe a lawsuit will surface later on by investors in this fraudulent business plan...or pyramid!

a reply to: dawnstar

No worries at all.

Hmm perhaps they have too much invested in Chinese companies to jump ship on those yet?

China's markets are crashing... it does raise a number of questions....

originally posted by: FamCore
a reply to: dawnstar

No worries at all.

Hmm perhaps they have too much invested in Chinese companies to jump ship on those yet?

China's markets are crashing... it does raise a number of questions....

Please find a reference to back up your thoughts how the Chinese have ties into ING...it would make for a great discussion on business banking

a reply to: dawnstar

Typically throwing good money at a bad business model or inferior product or bad executive staff only prolongs the inevitable.

However, the good news is that the CEO likely got their 50 Million dollar bonuses on the tax payers back as soon as they touched the stimulus money.

So did the Bailout work, yes for the CEO and board of directors with the largest stock ownership who bought time.

a reply to: Skywatcher2011

Lawsuits don't exist in the finance world, you only have to look back to 2008 to see just how many were punished for the whole Libor/housing bond fraud that went on

a reply to: Skywatcher2011
is there a connection between ing and aig? there's definately a connection between aig and chinese markets since the article clearing states that the only four offices being left open are those that deal directly with the chinese markets...

wonder if this has something to do with it...

The bottom line is that AIG and Prudential will need to assure shareholders that they’re taking as much action as possible to reduce the amount of capital they have to set aside as nonbank SIFIs so that it is available for shareholders, analysts said. Under the Fed’s oversight, they’re expected to have ample money on hand as a capital cushion to address unexpectedly large losses and avoid harming the broader economy in a collapse.

AIG has been feeling heat since last fall to take dramatic steps to “de-SIFI,” as companies and analysts put it. That’s when billionaire investors Carl Icahn and John Paulson publicly revealed proposals they have put to the global insurance conglomerate to break into three separate companies as a way to become small enough to escape the SIFI tag.

blogs.wsj.com...

maybe someone can explain just what that means, but it does seem that AIG might have made themselves small enough now?

a reply to: dawnstar

SIFI is in reference to financial institutions that are considered important enough that if they fail it could lead to economic crisis again.

It seems that AIG are trying to get around this "tag" they now have by splitting up the company into smaller companies so if one fails they don't all fail.

But even if they split they'd still be under one umbrella and run by the same people, so if it fails it doesn't matter if it's smaller companies failing or one big company failing they still fail.

Execs in the finance sector are just idiots constantly trying to find loopholes and escape regulations in order to basically gamble billions at the expense of everybody else when they lose their gamble

a reply to: Discotech

I can't help but get the feeling that they are bailing, but we probably won't find out what they are planning till they have their conference with the shareholders. it's interesting that none of the major news sources seem to have picked it up. I've found articles from local sources where some of the offices were at but none of the bigger ones.