AIG considering selling Manhattan headquarters

[sabra]

Source: CNN

(CNN) — Embattled insurance giant AIG confirmed Wednesday that it is considering selling its headquarters in New York City.

“AIG is evaluating the potential sale of its headquarters building at 70 Pine Street and the 72 Wall Street building,” AIG spokesman Mark Herr said in a written statement.

“This is part of AIG’s divestiture strategy and effort to maximize operating efficiency. Both buildings were constructed in 1932 and have been owned and operated by AIG since the 1970s. Market interest received will help determine the best course of action,” he added.


Read more: http://cnnwire.blogs.cnn.com/2009/03/18/aig-considering-selling-manhattan-headquarters/

[kiranon]

1. Sell? Give it to the taxpayers, they've paid for it.

[denverbill]

2. Sorry, sale proceeds are needed to pay more retention bonuses. n/t

[PSPS]

3. Yes, may as well set up the new hideout in, say, Dubai. It's the thing to do these days.

[E-Z-B]

7. Dubai. Exactly what I was thinking.

[antimatter98]

4. Lookit: that London office that caused all this needs to be shut down.

And the people fired, without bonuses.

Do you know that that London office, comprised of about 300 employees, was
THE source of the mess that not only took AIG into its current state, but also
rippled into the other financial institutions? And these folks 'deserve' bonuses?

They deserve jail in the UK.

Source:
http://abcnews.go.com/Business/Story?id=7045889&page=1

[Nihil]

23. There's one person in particular who needs to be jailed ...

> Joseph Cassano, an American who ran the group for eight years, ...
>...
> For years, the system worked fine for Cassano and, during his eight-year
> reign as head of the Financial Products Group, Cassano pocketed $280 million
> in salary and bonus. But about one year after Cassano boasted that he wasn't
> worried about losing a single dollar, AIG began bleeding billions.
> ...
> Cassano, who has homes in London and Connecticut, was forced to retire from
> AIG on March 31. Critics say despite the fact that the company is
> hemorrhaging money and being kept alive with taxpayer cash, Cassano has been
> allowed to keep his windfall.
> In addition, according to Cassano's signed retirement agreement obtained
> by ABC News, he was to be paid $1 million a month by AIG for "consulting
> services" through the end of last year.
> ...
> Sir Alan Sugar, often referred to as Britain's Donald Trump, told "GMA"
> that you can't blame London for the AIG problems.
> "It may have started here, but it's an American company," Sugar said.
> "It just happened to be their place where plots were threaded."
(All from your own link)

So ... in addition to his $280M in salary & bonus, and any other little
treats in his golden handshake when forced to retire, he picked up a
further $9M for "consulting" for AIG while it was both going down the
pan and collecting handouts from USG.

If you think this was a London problem rather than AIG culture, you really
need to think again.
:hi:

[bluestateguy]

5. They should give it to the taxpayers

Namely, people who have been rendered homeless due to foreclosure.

[merh]

6. Isn't the building collateral for the bailout we taxpayers have given AIG?

Hell with them getting any more profits and bonuses.

[Doctor Cynic]

8. AIG HQ to sell at fraction of price

Source: Crains New York

Perhaps AIG is looking for a new way to fund its bonuses.

The insurer, which is being pilloried for using taxpayer money to fund fat bonuses amid massive losses, is trying to sell its headquarters at 70 Pine St., as well as the connected building at 72 Wall St.

Sources say neither building is likely to fetch significant sums of money for American International Group Inc. because they’ll be delivered vacant in a market where tenants are scarce. Experts estimate that the buildings would fetch anywhere from $100 a square foot to $150 a square foot. That would put the price tag for 70 Pine St. between $78 million and $116 million while 72 Wall St. might bring in between $33 million and $49 million.

Six months ago, sources had estimated that 70 Pine St. could command between $310 million and $385 million, in part because the Art Deco Tower with its lovely architectural details and relatively small floor plates would have made an ideal condo conversion. At this point, however, it is highly unlikely anyone would want to convert the tower in a deepening recession that has already sent apartment prices reeling and left a vast number of units vacant.

Read more: http://www.crainsnewyork.com/article/20090318/FREE/903189981

[dysfunctional press]

9. the really funny thing is that taxpayers pretty much own the company by now...

and in order to get our money back from the LOAN, aig has to become a profitable company or be able to make money on the sale of assets...
BUT- the public(and misplaced) big bad 'bonus' OUTRAGE (over less than 1/10 of 1% of the money that we've INVESTED in the company) could SERIOUSLY damage the value of aig and it's assets, making it that much more difficult or possibly even unlikely that we'll get our money back at all.

are we a smart country, or what...? :shrug:

[truthisfreedom]

10. Well, if the taxpayers own the company for 10 or more years, perhaps prices will begin to recover...

And we can sell off their crap then?

Probably not.

[stillcool]

12. Cool...we can run it into the ground..

and then the Carlyle Group can come along and scoop up all the properties!! Everybody wins!

[dysfunctional press]

14. and all on the taxpayer's dimes...lots and LOTS of dimes.

yay!

[Canuckistanian]

11. They can work out of portables - schools have been doing it for decades

What, you say? Companies need to have decent buildings to do their work?

Those offices should be given to an organization that BENEFITS society.

[lurky]

13. It's actually a really cool old building.

I think it's an under-appreciated skyscraper, mainly because it's surrounded by so many other tall buildings that you can't really see it. AIG is not the original owner, and hopefully someone less evil will find a use for it. Here's the Wikipedia entry:
http://en.wikipedia.org/wiki/AIG_Building

[JackRiddler]

25. It's the tallest building downtown, third tallest in New York.

Post-WTC, that is. It's not as big as others, though, it's slender and lovely. I want it. What a fucking bargain at $100 million. Someone should lend me that cash, damn it, we can figure out how to pay this sucker off. Any takers?

[lurky]

26. You could apply for a NINJA loan.

Are they still handing those out? :evilgrin:

I would be happy to go in with you, but I spent my life savings doing laundry yesterday.

[JackRiddler]

27. Well, so did I...

spend my life savings, the cash part, yesterday, several percentage points, just for food and subway fees. But 100 million is peanuts... maybe we can get it off the government? I'm sure we can come up with an excellent use plan!

[w4rma]

15. The execs are taking everything that isn't bolted down and are leaving. (nt)

[rpannier]

16. Wish I had the money to buy it

Put in a couple of throw pillows, a futon, mini-fridge and a 13" b/w tv.
I'd have a crash pad whenever I was in NYC

[Tx4obama]

17. It's a shame

It's a shame that all the money nowadays is spent on modern art-deco'y type of buildings instead of old fashioned type of buildings like the Capital building and the White House in D.C. ... and like all the historic buildings in Rome, Italy - stone, marble, and columned types. The buildings that are built nowadays basically all look the same - tall shiny skyscrapers - and will eventually be torn down to build other buildings in their place. Seems like the folks with all the money to blow would build something 'awesome' that would last 2000 like the Pantheon in Rome so that there would be something lasting attached to their name. Even new churches that are built have no character like in the old days... almost makes ya wanna cry.

[No Elephants]

19. Art Deco architecture is not in the same category with ticky tacky modern.

[JackRiddler]

28. 70 Pine Street dates from the 1920s - it's real Art Deco (photos)

Old pics of skyline:

[NBachers]

18. Maybe DU needs a new HQ

[No Elephants]

20. The price seems ridiculously low for a 66-story, interesting

office building in downtown Manhattan. This is one of many reasons why the rich get richer. If you had the money to buy it now, you could make a fortune.

Let's form a limited partnership with DU as the general partner and bring in lots of small investors and do an honest sharing of the profits.


(J/k "Honest" is SO last century.)

[tomm2thumbs]

21. The US should keep it for our new American Health Care Services Center

We own the f**ker, let's keep the f**ker

[pam4water]

22. Why are they dumping it now? Spite? Interesting it's not enough to cover the bonuses.

They should look closely at who ever buys it if it is sold.

[SOS]

24. New AIG headquarters will reflect profitability and management skill: