(Reuters.com) -- Shares in American International Group (AIG.N) soared 30 percent on Thursday after new Chief Executive Officer Robert Benmosche told Reuters he did not favor a fire sale of the bailed-out insurer's assets and that in a year people will say AIG is performing well.

"I think we will be clear as to what the vision is, what the reality of that vision is. We'll have a better sense of what our strategic companies will be worth, and what the marketplace will be worth, and people will say, wow, AIG is performing well," he said in an exclusive interview with Reuters.

He said he does not favor a quick sale of company assets at any price. "Just selling this company and getting whatever you can get for it and hope that it covers whatever debts you have, it's not for me. I don't think that's the way to go," he said.

AIG's shares rose more than 30 percent to $49.20 by midday in New York.

Last September, AIG was on the verge of collapse from massive losses on derivatives linked to the subprime mortgage crisis until the U.S. government stepped in. The new CEO is charged with leading AIG in repaying more than $80 billion in U.S. bailout loans while keeping the insurance company stable.

Interesting isn't it? How fast these badly battered stocks jumped on this kind of news or rumours? 

Financial sector geared to start week lower
BOSTON (MarketWatch) -- Some of the more speculative financial stocks that have been powering the market's gains were set to cool a bit on Monday after their recent run-up. In premarket trading, shares of Citigroup Inc. (C  5.08, -0.15, -2.87%)  were down 3%, Fannie Mae (FNM  1.92, -0.12, -5.88%)  shed 7%, Freddie Mac (FRE  2.23, -0.17, -7.08%)  slipped 7%, American International Group Inc. (AIG  45.60, -4.63, -9.22%)  fell 9% and Bank of America Corp. (BAC  17.69, -0.29, -1.61%)  dropped about 2%. Conversely, E-Trade Financial Corp. (ETFC  1.70, +0.06, +3.66%) shares were up about 4% ahead of the opening bell after Citadel Investment Group LLC said Monday that it has terminated a plan to sell up to 120 million shares of E-Trade common stock.

AIG Stock Moving Back to Reality

After a significant jump over the past week -- a move many market watchers believe was borne of emotion and speculation -- shares of the flailing insurer fell nearly 6% in pre-market trading to $42.76.
The move might have also reflected news from earlier this morning, as Reuters reported that whoever wins the bid for AIG's Taiwan unit will need a little patience: The buyer of Nan Shan Life is expected to run the division for at least seven years, Reuters reported, citing Taiwan's financial regulators.

So anyone looking to buy the unit and then swiftly sell it off is out of luck. AIG has been having difficulty selling Nan Shan, as bidders are scaling back their offers. Three bidders offered $1.5 billion, below the $2 billion AIG expected, Reuters reported.

Bids on the unit include: a joint bid from Caryle Group and Fubon Financial; a joint bid from Primus Financial and China Strategic; and a solo bid from Cathay Financial.

But new CEO Robert Benmosche may not go for the low-ball bids. He has stated that he will not be as free in selling off AIG's assets for barrel-bin prices in an effort to repay the insurer's $85 billion loan from the government.

-- Reported by Jeanine Poggi in New York.

Today BAC ex-dividend date. $0.01/share. Just go in last week.

nothing, just pure money making machine. very volatile. Dare to enter?

I still don't touch AIG and FRE.

But C... it was nice move indeed. But if C goes back to $5, time to sell again. 

---

Added on September 3, 2009, 9:21 pm

Yeah, AIG is very volatile because too many sharks there. Worse than my 3x ETF. 

How UNG Distorts The Natural Gas Market

The natural gas ETF United States Natural Gas (UNG) is causing huge distortions in the gas market. Knowing what UNG is going to do next (or when it might be forced unwind) must open up a lot of opportunities for sharp traders. It seems highly likely that this fund can be nickel and dimed in the market place.

Starting at about 1:00 into the video:

    * UNG has an unusually high premium. "This ETF is running huge premium... It runs usually at a 1 or 2 percent premium. Recently it topped out at a 19 percent premium to the actual futures."

    * UNG can be 30% of the gas market. "Every month UNG is forced to roll their entire position in the spot month into the next month. And they have controlled upwards of 30% in the spot commitment at Nymex at times."

    * UNG is causing the sharp difference between near term and longer dated natural gas prices. "It's clearly making this crazy contango in the natural gas market."

news for C

"The company said Thursday that shareholders also authorized the board of directors to complete a reverse stock split any time before June 30."

NEW YORK (MarketWatch) -- Citigroup Inc. shareholders have approved final arrangements that will result in U.S. taxpayers owning a 33.6% stake, the company said Thursday.

Citigroup (C 4.73, +0.17, +3.73%) said common stockholders approved three resolutions, including one allowing it to boost the number of authorized shares of common stock to 60 billion.

The shareholders also agreed to eliminate the right of common shareholders to vote on any amendment to the restated certificate of incorporation that relates solely to the terms of any series of preferred stock.

The final approved proposal authorizes but doesn't require that Citigroup's board effect a reverse stock split, at one of seven ratios, at any time prior to June 30, 2010.

Citigroup said the votes allow it to complete the conversion of warrants issued to the U.S. government and some private investors into new common shares.

The votes allow the completion of the previously announced share exchange.

Upon completion, the U.S. government will own 7.69 billion Citigroup shares, or 33.6% of the bank's outstanding common stock.

nice V shape of UNG. From -42 cts + 15, super volatile.

In 1 minutes drop 10-15cts and next up the same value.

So you have 25k or more in your account?

Pre-Market

Goreng in progress, and as USUAL:

FNM, FRE, AIG. In fact, I opened up the 1hr chart, all are having the same pattern.

itchy on FNM/FRE... arhhhhgggggghh