AIG posts second straight profit
Nov 7, 2009 Make Money Online
By Lilla Zuill
AIG, the giant insurer bailed out by the U.S. government, posted its second straight quarterly profit, helped by recovery in the value of its investments, but its underlying business remained weak and its shares fell.
“It is clearly still a troubled company,” said CreditSights analyst Rob Haines. “Its operations are clearly weaker than some of its higher quality competitors. AIG used to be one of those companies.”
American International Group Inc (AIG.N) shares, after rallying ahead of the results on Thursday, closed down $3.80, or 9.67 percent, at $35.48 on Friday. Read the rest of this entry »
Tags: AIG, AIG Financial Products, AIG.N, American International Group Inc, bank, Business, CreditSight, income, insurance
CIT debt swap could cost U.S. more than $1.8 billion
Oct 3, 2009 Make Money Online
NEW YORK (Reuters) – If CIT Group (CIT.N) exchanges its debt under an offer aimed at averting a bankruptcy filing, the U.S. government could lose nearly 80 percent of its $2.33 billion investment in the troubled commercial lender.
A likely $1.8 billion loss would be another black eye for the United States’ Troubled Asset Relief Program. A government official said last week that TARP has saved the financial system from collapse, but fell short of some of its other goals.
Some parts of the program may lose money, added the official, Neil Barofsky, special inspector general for the government’s TARP program.
The U.S. government bought $2.33 billion of CIT preferred shares in December 2008 as part of the TARP program. In July, CIT sought additional government support, but those talks broke down and the company was forced to work out its funding issues on its own.
Under the exchange offer, investors in preferred shares and securities that get exchanged into preferred shares will end up with 97.5 percent of CIT’s shares, which should equal about 15.7 billion shares. That means that the total number of outstanding CIT shares should be about 16.1 billion. Read the rest of this entry »
Tags: AIG, American International Group Inc, Billion Dollar, CIT Group, CIT.N, Commercial Lender, Commercial Loan, debt, Money, TARP, United States' Troubled Asset Relief Program
AIG CEO says regrets sharp criticism of Cuomo
Sep 1, 2009 Make Money Online
By Adam Tanner
BELGRADE (Reuters) – Robert Benmosche, the new CEO of American International Group Inc, said he regrets tough comments he made about New York’s attorney general, saying he was trying to bolster a demoralized AIG work force.
“You can characterize me as a goon or you can characterize me as somebody who is attempting to deal with a complex issue of a very demoralized employee force and said those things to them in confidence to reassure them that they no longer have to be afraid that they are going to be attacked again,” Benmosche told Reuters in an interview on Tuesday.
During a closed-door staff meeting in Houston, Texas, last month, Benmosche said New York Attorney General Andrew Cuomo “doesn’t deserve to be in government” and had acted like a “criminal.” Read the rest of this entry »
Tags: AIG, American International Group Inc, CEO, employee, Goverment, payment, Stock Market
