American Internatioal Group has to repay emergency aid

AIG, the stricken US insurer, is considering selling more than 15 businesses, including its aircraft leasing unit, a stake in a large US reinsurer and billions of dollars in properties in an effort to repay a $85bn government loan and secure its future as an independent company.

The board of AIG, which was de facto nationalised this month when the US administration stepped in with an emergency loan, was meeting in New York on Sunday night to discuss a radical plan for asset disposals. People close to the situation said AIG , led by its new chief executive Edward Liddy, wanted crucial businesses such as its international life insurance unit and its US pension businesses to be at the core of the “new AIG”. But apart from those, AIG was prepared to consider selling most other operations.

AIG and its advisers, led by Blackstone and JPMorgan, are believed to have drawn up a list of about 15-20 large businesses that could be sold. AIG has to move fast because it has short window to repay the emergency governemt aid .

The governemtn extended the loan , gives itright to buy a majority stake in the company , after AIG collapsed under the weight of billions of dollars in credit related losses .

Lehman brothers is probably the largest bank failure in the U.S. history. A german bank calles KfW did one of their worste deals ever in their history and ceo’s of the bank get punished fot that mistake .

After the transfer margin of the state bank KfW, two executives mangers had to leave their job . The Board of Directors of KfW decided the immediate termination of the boards Detlef Leinberger and Peter Fleischer.
This news got published by the Finance ministers Peer Steinbrueck (SPD) and German Economics Minister Michael Glos (CSU). Apparently it was the fault of the two boards that they borrowed 350 million Euros to Lehman brothers before they got bankrupt.

KfW decided to do a deal with the U.S. investment bank Lehman Brothers to set up a business of 350 million euros, although the institute was already insolvent.
Fleischer and Leinberger got immediately removed from their offices. The existing service contracts would be terminated.

There are certain mistakes that just can't be allowed to happen at a bank. Transferring 350 million to Lehman Brothers an institution that had already shown itself to be a candidate for bankruptcy the night before is one of those mistakes. The state owned lending bank KfW will now have to provide a detailed account of how it could have made such a misstep. What's more important, though, is that it needs to take a really close look at its in house risk management department and make the changes needed to make sure something like this can never happen again. KfW has undergone immense growth over the past few years.

It has grown more entwined in the capital market and thereby diversified its own refinancing. But now is the time for Germany's ninth-largest bank (in total assets) to ask itself whether the growth of its internal structures has kept sufficient pace with the bank's other growth and whether it still has all of its other functions under complete control