Mentors Posted February 24, 2009 Report Share Posted February 24, 2009 AIG May Restructure Rescue Package for Second Time Feb. 24 (Bloomberg) -- American International Group Inc., the insurer bailed out by the U.S., may restructure its $150 billion rescue package for a second time in four months as the recession and slumping stock market cut the value of its assets. AIG may convert the governmentâ??s preferred shares into common stock to reduce pressure on the companyâ??s cash flow, a person familiar with the situation said yesterday. New York- based AIG pays a 10 percent dividend on preferred stock, and none on common shares. AIG declined in German trading. â??Paying a huge dividend on the preferred only makes you bleed slowly over time, so this would help,â? said Robert Haines, an analyst at CreditSights Inc. in New York. AIG is facing a â??huge potential loss on its investment portfolio,â? which could lead to credit-rating downgrades, he said. AIG, once the largest insurer by assets, probably will report a fifth straight quarterly loss, casting further doubt on the companyâ??s ability to repay the U.S. Executives at New York- based Citigroup Inc., previously the largest bank, also have discussed a share conversion as a way to quell capital-adequacy concerns, according to another person familiar with the matter. more http://www.bloomberg.com/apps/news?pid=20601103&sid=asgUdtMJDlxU&refer=us the whole planet is in dept - how will this fiasco end? Will it ever end? Link to comment Share on other sites More sharing options...
unit731 Posted February 24, 2009 Report Share Posted February 24, 2009 AIG was just mentioned in another post about home/residence insurance in LOS. Is this the same AIG? Link to comment Share on other sites More sharing options...
Faustian Posted February 24, 2009 Report Share Posted February 24, 2009 So AIG and Citibank are still bleeding...I'd say that's cause for concern! Link to comment Share on other sites More sharing options...
Mentors Posted February 24, 2009 Author Report Share Posted February 24, 2009 AIG was just mentioned in another post about home/residence insurance in LOS. Is this the same AIG? unfortunately yes. Link to comment Share on other sites More sharing options...
Mentors Posted March 2, 2009 Author Report Share Posted March 2, 2009 The US federal government agreed Sunday night to provide an additional $30 billion in taxpayer money to the American International Group and loosen the terms of its huge loan to the insurer, which is preparing to report a $62 billion loss on Monday, the biggest quarterly loss in history, people involved in the discussions said. http://www.nytimes.com/2009/03/02/business/02aigweb.html?hp Link to comment Share on other sites More sharing options...
ozpharlap Posted March 4, 2009 Report Share Posted March 4, 2009 Did the US of A not criticize Zimbabwe recently, for just printing money for the sake of it? Are they not, in turn, doing the same thing? I am just wondering when the USA financial sector will just implode, surely they cannot possible service their own debt. Link to comment Share on other sites More sharing options...
HeartThais Posted March 4, 2009 Report Share Posted March 4, 2009 Did the US of A not criticize Zimbabwe recently, for just printing money for the sake of it? Are they not, in turn, doing the same thing? I am just wondering when the USA financial sector will just implode, surely they cannot possible service their own debt. If you needed money and could borrow at just over 2.5% interest for 10 years, what would you do? Link to comment Share on other sites More sharing options...
drogon Posted March 4, 2009 Report Share Posted March 4, 2009 I need a bit of financial help too...would like to have a nice house in LOS so maybe the US government could help me? I don't need as much as AIG (missus working for AIA the LOS branch) -> just a few million $ will do it. Link to comment Share on other sites More sharing options...
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