tagged w/ American International Group
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Bailed-out insurer American International Group took another step toward winding down its U.S. government support on Monday by securing $4.3 billion of bank credit lines, and company shares surged.
http://www.indiareport.com/India-usa-uk-news/reuters/Business/71471Bailed-out insurer American International Group took another step toward winding down... more
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American International Group has paid another round of employee bonuses, worth about $100 million, a year after similar payments at the bailed-out insurance giant infuriated many Americans. Meanwhile, Goldman Sachs, another firm bailed out by US taxpayers, has just announced that its chief executive, Lloyd Blankfein, received a stock-based bonus of $9 million in 2009.American International Group has paid another round of employee bonuses, worth about... more
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The embattled insurer American International Group Inc. is selling its headquarters building in New York and a nearby building in a deal expected to close at the end of this summer, a person familiar with the matter said Wednesday.The embattled insurer American International Group Inc. is selling its headquarters... more
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American International Group Inc. on Thursday said the chairman and chief executive hand-picked to lead the company when it was rescued by the government last fall will step down.American International Group Inc. on Thursday said the chairman and chief executive... more
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The government on Monday unveiled a revamped rescue package to insurance giant American International Group and will provide the troubled company another $30 billion on an ``as needed'' basis.The government on Monday unveiled a revamped rescue package to insurance giant... more
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More disturbing news on the financial black hole known as AIG: The Wall Street Journal reports that the insurance giant "owes Wall Street's biggest firms about $10 billion for speculative trades that have soured." AIG has maintained that its trades helped other financial institutions to insure their holdings, but this is evidence that it was also gambling with its own capital. It now needs to pay off those debts, but the terms of the $150 billion bailout the AIG has received do not cover them: The bailout purchased bad securities to ease AIG's struggles, but these trades were purely speculative, with no underlying securities to purchase. The Fed has no immediate plans to aid AIG in paying off these debts.More disturbing news on the financial black hole known as AIG: The Wall Street Journal... more
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The government on Monday provided new financial assistance to troubled insurance giant American International Group, including pouring $40 billion into the company in return for partial ownership.The government on Monday provided new financial assistance to troubled insurance giant... more
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The U.S. government stepped in Tuesday to rescue American International Group Inc., one of the world's largest insurers, with an $85 billion injection of taxpayer money.The U.S. government stepped in Tuesday to rescue American International Group Inc.,... more
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Fearing a financial crisis worldwide, the Federal Reserve reversed course on Tuesday and agreed to an $85 billion bailout that would give the government control of the troubled insurance giant American International Group. Fearing a financial crisis worldwide, the Federal Reserve reversed course on Tuesday... more
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The Federal Reserve said Tuesday night it would lend up to $85 billion to flailing insurance giant American International Group, saying the move was necessary to protect the financial system.
The action averts a bankruptcy filing by AIG (AIG), which has been struggling to raise capital after crippling losses on protection it sold to investors in mortgage-backed securities. It also faced additional pressures to meet collateral calls from investors after its credit rating was downgraded by four rating agencies Monday night.
The senior management of AIG will be tossed out, and the government will effectively be in control of the company.
The government will have a 79.9% equity interest in AIG and the right to veto the payment of dividends to common and preferred shareholders.
The Fed's decision, made with the Treasury Department's support, came just days after the Treasury and Fed refused to bail out investment bank Lehman Bros. The main difference between the two situations: AIG is so huge and its operations so intertwined in the financial system that the Fed feared an AIG failure could harm the broader economy.The Federal Reserve said Tuesday night it would lend up to $85 billion to flailing... more
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NEW YORK (AP) -- Stocks fluctuated Tuesday following a report that the government is considering extending aid to troubled insurer American International Group Inc. - the latest in a string of companies that investors worry could be undone by a shortage of cash.
A partial recovery in several other financial companies helped the sector show signs of life a day after leading Wall Street to its worst session in years. Investors also grew hopeful about a Federal Reserve interest rate cut.
Worries about AIG's well-being intensified Monday and early Tuesday after several ratings agencies downgraded the company. Lower ratings can add to the amount of money the already cash-strapped company has to set aside. Investors fear that a failure by the world's largest insurer would touch off a wave of financial turmoil.
But a CNBC report said the government is at least discussing extending a financial lifeline to the company; it cautioned that an agreement is far from certain and also that the company isn't likely to find help from the private sector. AIG fell $2.07, or 43 percent, to $2.69 after being down nearly 75 percent in earlier trading.
Markets around the world were still reeling from the bankruptcy filing of Lehman Brothers Holdings Inc. and the quickly assembled weekend sale of Merrill Lynch & Co. to Bank of America Corp. Investors worry that tectonic shifts in the power structure of Wall Street signal that the financial sector's trouble with imperiled credit are far from over.
The Fed's regularly scheduled meeting, which many economists had expected would be a pro forma occurrence, is now much anticipated, especially after central banks around the world have loosened money supplies this week. The banks are hoping an injection of capital will help soothe markets following the most serious tumult of the 14-month-old credit crisis.
Steve Sachs, director of trading at Rydex Investments, contends that the market won't be able to move past its concern about the financial sector until it sees a resolution of its worries over AIG.
"I think the AIG issue needs to get solved and it needs to get solved today," he said.
In late morning trading, the Dow fell 34.52, or 0.32 percent, to 10,882.99. The Dow rose as much as 105 points and fell as much as 175; on Monday, the Dow lost 504 points, its largest drop since the September 2001 terror attacks.
Broader stock indicators also turned higher. The Standard & Poor's 500 index rose 5.46, or 0.46 percent, to 1,187.24, and the Nasdaq composite index fell 9.49, or 0.44 percent, to 2,170.42.
Bond prices rose as investors turned away from the safety of government debt. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.37 percent from 3.41 percent late Monday.
Light, sweet crude fell $3.70 to $92.01 on the New York Mercantile Exchange as investors placed bets that slowing economic growth will crimp demand. The dollar was mixed against other major currencies, while gold prices fell.
Some banks advanced. JP Morgan & Co. rose $2.47, or 6.7 percent, to $39.47, while Wells Fargo & Co. rose $3.80, or 12 percent, to $34.80.
Names that investors often rely on as safe bets in a weak economy also rose. Wal-Mart Stores Inc. rose $1.24, or 2 percent, to $62.87, while McDonald's Corp. rose 77 cents, or 1.2 percent, to $64.49.NEW YORK (AP) -- Stocks fluctuated Tuesday following a report that the government is... more
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American International Group Inc., the world's largest insurer, was hit by a wave of downgrades by credit-rating agencies worried that the deteriorating housing market is further undermining the company's battered finances.American International Group Inc., the world's largest insurer, was hit by a wave... more
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The American International Group, the insurance company, is planning a major reorganization and a sale of its aircraft leasing business and other units to stabilize its finances, a person briefed on the company’s strategy said on Sunday.
A.I.G. became one of the focuses at an emergency gathering of Wall Street executives over the weekend, and was trying to arrange a capital infusion in the face of possible credit downgrades.
It was unclear whether A.I.G. would succeed in its capital search, but a person briefed on the discussions said it was seeking more than $40 billion even as it tried to sell assets to shore up its financial footing. Among the businesses likely to be sold is A.I.G.’s aircraft leasing business, the International Lease Finance Corporation. Founded in 1973, the business has nearly 1,000 planes in its fleet.
Investors, afraid that A.I.G. would have to absorb further write-downs in its already damaged mortgage securities and collateralized debt obligations, have driven down the company’s shares in recent days. The stock closed Friday at $12.14 a share, a decline of 46 percent for the week.
Several private equity firms were at A.I.G.’s headquarters in downtown Manhattan on Sunday, and may inject billions of dollars in capital into the firm, a person briefed on the matter said.
A.I.G.’s problems are not new. The company lost $13.2 billion in the first six months of 2008, largely owing to declining values in mortgage-related securities held in its investment portfolio and collateralized debt obligations it owns.
But the company’s outlook grew grimmer last week when Standard & Poor’s warned that it was considering downgrading the company’s debt as a result of further write-downs it might have to take.
As the credit storm has raged in recent months, insurance companies like A.I.G. have been better positioned than the nation’s banks and brokerage firms to weather it because accounting rules do not require insurers to mark the investments held in their long-term portfolios to market. Insurance companies like A.I.G. can hold their investments until they mature, riding out the ups and downs in the market for those assets.
The American International Group, the insurance company, is planning a major... more
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