AIG Seeks Renegotiation of Loan, AGAIN

AIG is once again prepared to ask the Federal Reserve to relax rules on its $60 billion-plus asset disposal program.  Apparently, AIG is miffed about the high interest payments it must make to the Fed on the loan and wants to speed up the asset sales.  AIG is looking at installment payments and other flexible options to make it easier for potential buyers to bid for the assets (at inflated prices) and increase the chances that AIG can extract itself from the government's firm grip.  According to the current deal with the Fed, mind you the SECOND more lenient bailout from the Fed, AIG can only sell assets to bidders paying at least 90% of the price in cash.  Because of this onerous and unfair restriction, AIG is not getting what it deems to be high enough bids, if any, from potential bidders.  Given the current financing environment (i.e. lack of financing environment) and the restrictions on balance sheets (i.e. everyone else is a seller of assets too), this situation should not come as a surprise to anyone with a pulse, (i.e. including my one-and-a- half-year-old toddler.)  If the Fed falls for yet another one of AIG's whiny pleas for leniency to save it from the burden of having to actually pay for its financial sins, I will definitely be one of the bidders in AIG's next auction of a valuable subsidiary.  Instead of offering cash, I will be bidding with a pair of slightly used boots (very stylish), a nine-year-old Jeep Wrangler (still runs great), and a few shares of Enron stock (I'm sure they will pay off eventually, I always buy stocks for the long haul.)  Since I hear this is the type of collateral the Fed is currently accepting in the discount window, I'm hoping to pick up AIG's asset management unit on the cheap.  You see, I have no balance sheet restraints.