As Applicants Line Up, Is Fed Near Its Limit? [ANALYSIS] ·
As the Federal Reserve debates whether or not to grant bank status to GMAC Financial Services, analysts contend the central bank risks perverting the traditional bank holding company charter, which was never meant to serve as a safe haven for companies in trouble. (American Banker)
October 30, 2008
American International Group
AIG Taps Fed Facility To Repay U.S. Loan ·
American International Group repaid $6.8 billion of a $123 billion U.S. government credit line by borrowing from the Federal Reserve's commercial paper facility on Thursday. (Reuters)
AIG: Where Did the Cash Go? [ANALYSIS] ·
American International Group has declined requests to detail how it has blown through $90 billion of a $123 billion government loan in less than a month, and forensic analysts are now pouring over its financial records, questioning whether irregular accounting of derivatives contracts masked pre-existing losses. (NYT)
AIG Taps $90B From Fed Reserve Credit Line ·
The New York Federal Reserve confirmed American International Group has tapped $90.3 billion from the U.S. government, roughly 75% of the $123 billion credit line extended in September to help it avert bankruptcy.(Bloomberg)
AIG’s Liddy Says U.S. Loan “May Not Be Enough” ·
American International Group's CEO Edward Liddy said late Wednesday that the $123 billion loan extended to the insurer by the U.S. government "may not be enough" if capital markets continue to decline and force the company to post more collateral. (Bloomberg)
AIG Agrees To Freeze Ex-CEO Payments, Bonus Pool ·
American International Group agreed Wednesday to freeze $19 million in payments to former chief executive Martin Sullivan at the request of New York Attorney General Andrew Cuomo. AIG also said it would block distributions from a $600 million deferred compensation and bonus pool. (CNN Money)
AIG Halts Lobbying Under Congressional Pressure ·
American International Group said Monday it will suspend its lobbying activities while it conducts an overall expense review. The decision comes days after lawmakers warned the insurer not to use its $85 billion government loan to fight tougher mortgage-industry regulations. (WSJ)
AIG To Stage Asset Sale By Year-End ·
American International Group's CEO Edward Liddy said Monday the troubled U.S. insurer should start to sell its business units by year's end to 15 to 20 buyers. He also reaffirmed his expectation the company will repay the $85 billion government loan it received to stay afloat. (CNNMoney)
U.K.’s Prudential Woos Backers For $15B AIG Bid ·
U.K. insurer Prudential is reportedly in advanced talks to sell a 20% stake to Chinese and Middle East investors in an effort to raise funding for $15 billion bid for the Asian business of American International Group. (The Times)
AIG May Seek More Government Funding ·
American International Group reportedly may seek a third cash infusion from the U.S. government by tapping the Federal Reserve's special commercial paper facility. Since September, the U.S. government has extended roughly $123 billion to prop up the troubled U.S. insurer. (Bloomberg)
AIG To Help Cuomo Recover Compensation ·
American International Group agreed Thursday to recover millions of dollars of improper expenditures, including executive compensation and conference fees, less than a day after New York Attorney General Andrew Cuomo assailed the insurer for violating the state's debtor-creditor law. (NYT)
Cuomo: AIG Bonuses, Retreats Violate NY State Law ·
New York Attorney General Andrew Cuomo sent a letter to American International Group's board demanding it recover "unreasonable" expenditures, including a $15 million payout to its chief executive and luxury retreats for employees, saying the expenditures violate New York's debtor-creditor law. (Bloomberg)
AIG To Continue Lobbying Despite Bailout ·
American International Group confirmed it has no plans to suspend lobbying activities on Capitol Hill, despite pressure from Congress to rein in excessive spending following the U.S. government’s $85 billion bailout of the insurance giant. (FT)
Fed Expands AIG Bailout, Injects $37.8B ·
The Federal Reserve said Wednesday that it will provide a $37.8 billion loan to American International Group to help it improve the liquidity of its securities lending business. The measure follows an $85 billion lifeline the Federal Reserve extended to the insurer in September. (NYT)
Greenberg: $85B AIG Loan Will Force Fire Sale ·
American International Group's former CEO, Maurice "Hank" Greenberg, told Congress Tuesday that the terms of the government's $85 billion loan will force a fire-sale of its most profitable assets. He suggested AIG might have fared better under bankruptcy protection. (WSJ)