NY State Insurance Deputy On AIG Deal

" New York. State insurance deputy superintendent. -- brooks joins us now. And you were amongst balance in the New York -- helping with this all AIG deal. And helping to broker the government take over updated now helping to sell some of the assets. So -- back in -- is 85 billion dollar. Government loan how is that going."

" well you know we're in the first day of -- as you know governor Bob Patterson. Directed the department work let them AIG. As well as on the bed. Two come up with a plan to and stabilize the company may have just -- five billion dollar bail out. -- part of the plan involves obsolete assets of the company in the orderly fashion. And that was our goal is to uninsured. Foods are liquidated. An orderly fashion there's -- fire sale. Solve that and we fully expect that they -- will be able to repay. That the federal government data let me go."

" Billion billion. And I'm."

" The million dollar and live well we're talking about directly in the end. And let's do it -- didn't -- that a little -- and going through the books and looking at this week we talked about the fact that. Every CFO and CEO from the insurance and financial brokerage companies have been blind to our faces about the actual assets on the balance sheet as you start thinking. And of these books that must've been really bad for you guys have to step in and then the next question is since that how much MI as a taxpayer truly going to be on the book or."

" I'll give -- what you want to really emphasize here is two things why the department went and and I'll look at the books and web. The Federal Reserve. We're fully confident that -- five million dollar bill billion billion dollar bill you know the parent trying to -- up will be sufficient we fully expect that the."

" So the pension plan however and make it so that. Talking it through -- those assets actually being valued at ninety cents on the dollars or started to fight so bidders for them we haven't built -- sell it 2030 cents on the dollar and -- then they. The 85 million dollars that would let them all we'll get 25 million I'll get back."

" And I think that the -- besides it's but to your credit facility and the reason why isn't -- your credit facility itself that. There's an orderly disposition and not a Firestone. That the the assets and that's the highest value. And so sitting here today no one can say. What particular asset and what Brothers gonna get nine -- on the dollar or fifty cents on the dollar but we do now. Is that by having a 24 month plan. We have the highest likelihood of getting the highest value of -- extra security but tell me how this works 85 billion dollar loan. At eight billion not million dollar loan after. Over -- comes out around 11% now almost eight billion dollars per year. As these assets are sold are they turned of that money turned over to the treasury and that reduces the loan amount and reduces future. That interest is his killer ten billion a year but. -- that you've just described the status as a result but that will be paid back first pieces as there -- so that they there's so that's good yeah I think -- and -- also want to emphasize to us that the latest on that not regulated assets of on the business why let's answer -- against all of the assets let's go. For that well let's talk about that for a second. The regulator of assets already. Under the supervision of the need of New York State regulated. It later -- the state regulators. Sure yeah insurance. Departments and dozens and -- result. Vols subsidiaries the -- operating civic subsidiaries are solved. They are financially -- I have one message today and that is as governor Paterson said last night and his a press conference. The policy holders. AIG policies. Have nothing to worry about both right policies. Armstrong this enhances the protection but there was never any danger. Arm before the policyholders and as a result. That the wave is on the not regulated as aspects of the bill okay where there's the problem."

" Well well that that's a good point because I mean I have my house insured by one AIG one of its subsidiaries American general and that's the key in New Jersey New Jersey state is saying if anything happens. You know that we have an agency did to cover that like the FB IC oven."

" Ensuring that Eric -- is that but. But they want to emphasize is that there's no bomb solvency problem with the the insured and I subsidiaries."

" Clip from my Hank Greenberg is going to be on Neil Cavuto show after happy hours and there. This he's the key player founder of AID head of the company from many many years was forced out -- 2005 over accounting issues with the New York State attorney general's office he now wants to buy some of these assets that you have for sale are there any. Regulations or procedures that would prevent him from doing that."

" Let me just talk. We just say this. That that -- disposition of assets. Are subject to. Our regulatory approval at a number of levels depending on the and I'm just like that any other regulated entity. All anyone seeking to control management. Or ownership of of insurance company it's. After -- regulatory approval and mr. Greenberger anyone else is no exception."

" better not get this guy took hundreds of millions billions of dollars building this company up but now my tax dollars or Philadelphia Villanova did not fire -- Asked several billion dollars and in -- all of the advocate that -- as I'm really felt they can't."

" brooks thank you very nice yeah thanks for they wanted to they're happy hour."