by Structured Settlement Watchdog
A year after nostrils-flaring politicians lost their minds over the 70 Pine Street crowd and Bill Hemmer's dramatic spin on the St. Regis sale conference, it looks like the dust is finally settling.
- In a positive note affirming AIG's ratings, Moodys says that it believes that AIG can pay back the $120 billion it owes United States taxpayers.
- 14 months after the world seemed over Moodys says "the restructuring plan still relies heavily on government support, but if AIG's operations and global financial markets continue to stabilize, the company can likely generate enough value to repay the government". They also remarked that the 3rd quarter results "show continued stabilization of the core insurance operations despite challenging market conditions''
The ratings agency also praised former MetLife CEO' Robert Benmosche's strategy to rebuild some of the AIG's businesses previously on the short list to be sold, but also noted that a decline in realizable value could lead to downgrades.
Given the recent track record of rating agencies, we might want to sprinkle a dash of "guarded" onto this new optimism, alongside a hearty pinch of skepticism. However, with these agencies now under the microscope, they’re probably less likely to hand out glowing reviews unless they’ve actually done their homework this time.
Mum's the word from the structured settlement world’s AIG “grave dancer,” Patrick Hindert, the Executive Director of The Settlement Services Group, who seems to karate chop his way through the industry with a quiet flair.
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