Find UFOs, The Apocalypse, New World Order, Political Analysis,
Alternative Health, Armageddon, Conspiracies, Prophecies,
Spirituality, Home Schooling, Home Mortgages and more, in:
No, I am not referring to the General Motor $300BN debt time bomb, but AIG... Price fixing, scale of the fraud and LOTS of easy money go so well along with corruption: it definitely looks like it. What do you think? ohh and by the way, Snow just urged to curb Fannie, Freddie funds!
A top insurance company as the new Enron?
An accounting probe at AIG worries Wall Street, and involves some of America's richest men.
NEW YORK – American business is facing yet another major scandal involving more accounting shenanigans.
But, this scandal has the potential to cause tsunami-sized damage: It involves a highly respected insurance company, American International Group (AIG) - which is part of the Dow Jones Industrial Average - which has now admitted to $1.7 billion in improper accounting. And, it has enveloped some legends in the financial arena: Maurice "Hank" Greenberg, forced out as chairman of AIG, and Warren Buffet, the Omaha stock market guru, who will be questioned about his possible involvement.Because AIG is so massive and important to the financial world, regulators will have to tread carefully. The company's main business is providing reinsurance, that is, it insures insurance companies. This helps the industry to spread its risk among many large and financially sound companies so a single event does not become a financial disaster for one company. Also, because of AIG's huge size, lawyers don't think the government will bring a criminal charge against the company as it did for Arthur Andersen, Enron's accountant. The criminal charge was a death sentence for the accountant...
Global investigation
The investigation is likely to also expand overseas. AIG has operations offshore, particularly in Bermuda where it has used a company to provide financial rewards for its executives. "It's common for insurance companies to use offshore companies and not be public about it," says Gass. "There is nothing illegal about it unless there is misuse.".... The scandal links two of the world's richest men. According to Forbes Magazine, Buffet is the world's second-richest person with assets of $41 billion. Greenberg is ranked 132 in the world and 59th in the US with assets of $3.1 billion. Recently, two of Greenberg's sons, both executives in the insurance business, have also been tarnished by scandal....... Before its legal troubles, AIG had begun an advertising campaign to become more well-known to Americans. Its most recent logo is "We know money." And, it brags it is the financial organization to choose for your "great-great-great-great-great grandchild." Now, lawyers expect it is likely to be fighting class-action lawsuits and irate regulators as it battles to survive.
http://www.csmonitor.com/2005/0401/p03s01-usju.html
ALSO:
(04/01) Warren Buffett's standing as the folk hero of investing facing a major challenge from the AIG scandals (SEE LINK BOTTOM AGE)
CRASH ALERT:
Market Collapse Next Week?
04/01/2005
This sounds ominous, but as we explain later on, with 500 more ounces of silver in our precious metals stash, no personal debt, and owing no one anything, we're sort of complacent about the war with Mexico that may break out today or this weekend and whatever it is that comes next. nevertheless, we would be remiss if we didn't tie our resident fractalists's latest into the mix:
George, GM is the US prototypical model for the future of the American economy. Consider this. Does GM's financial and prospective growth picture not closely mirror the tenuous conditions of both the average US citizen and the US government?
What are the immediate and long term prospects of GM's growth relative to its outstanding debt load and pension requirements? Just as the demographics of retiring baby boomers match GM's aging pension obligations, the probability of future US auto sales against the established Japanese autos and soon to appear new Chinese entry level cars are comparable to probable future earnings and lower numbers of young Americans service workers supporting future transfer social security payments. The prospects are grim. GM's monthly and weekly valuation analyses are remarkable in their uncanny validation of ideal cyclical growth and decay fractals. The long term monthly pattern since October 1998 is strongly suggestive of a nonlinear collapse in the near term.... more
http://www.urbansurvival.com/week.htm
(04/01) FBI Opens Probe Into Delphi Accounting
he FBI has joined the government investigation of accounting errors totaling hundreds of millions of dollars at Delphi Corp., the world's largest auto supplier. Delphi shares slipped in early trading.... Delphi has said that it improperly accounted for $237 million in cash payments for warranty claims to its former parent, General Motors Corp., in 2000. The accounting errors led to the resignations of Delphi's chief financial officer and controller....
http://biz.yahoo.com/ap/050401/delphi_investigation.html?.v=2
(04/01) Social Security Protesters Target Banks Around the Country ... Demonstrators rallied outside Wall Street firms in dozens of cities Thursday to protest what they say is a conspiracy between politicians and bankers to privatize Social Security....
http://www.keralanext.com/news/indexread.asp?id=169797
(04/01) 2 US banks double minimum payments for credit cards... Bank of America and Wachovia -- have increased the monthly minimum payments customers must pay. The new policy of some banks to raise the minimum required payment on credit card accounts from 2 percent to 4 percent will impact many consumers," said Pamela Hart, manager of Consumer Credit Counseling Services Inc. "For those who either pay their credit cards in full each month, or pay more than the minimum, there may be little impact," she said. "On the other hand, for those who are barely getting by and paying merely the minimum each month, the effect could be catastrophic." Hart said that while the average American carries credit card debt of about $9,000, the average credit counseling client she sees has debt more in the neighborhood of $20,000 to $30,000.........
http://www.dailykos.com/story/2005/3/26/123013/472
Serving Freedom
and Liberty
