Author: Farkas Laura

American International Group Inc (AIG) has hired law firm Weil Gotshal to draw up bankruptcy papers, the “New York Times” reported on Tuesday.          AIG could file for bankruptcy as soon as Wednesday if a financing solution is not reached, according to the “Times”, citing a person briefed on the matter.

CNBC has reported that American International Group may work out some kind of deal with the Federal Reserve to shore up its finances by the end of the day.        Under pressure from New York Governor David Paterson and AIG policyholders, the Federal Reserve is considering reversing its decision on Monday and providing some kind… Continue reading CNBC Reports Fed Could Help AIG Shore Up Finances

Earlier today a source familiar with the matter said that British bank Barclays has agreed to buy Lehman Brothers’ core U.S. broker-dealer business for roughly $2 billion.        The deal for Lehman’s broker-dealer business includes equity, fixed income, M&A advisory and other parts, according to the source, who declined to be identified.        Shares of… Continue reading Barclays to Buy Lehman’s Broker-Dealer Business for About $2B

Standard & Poor’s Ratings Services has placed its ratings on American International Group Inc. – currently ‘AA-‘ /A-1+ – and subsidiaries on CreditWatch with negative implications.      S&P said it took the action following the “significant decline in AIG’s share price and an increase in credit spreads on the company’s debt” (See related article).     … Continue reading S&P Puts AIG’s Ratings On CreditWatch Negative

The Insurance Insider      American International Group’s (AIG) share price has fallen a further 30 percent in pre-market trading to below $9 this morning as investors digested the collapse of Lehman Brothers this weekend amid fears that the Federal Reserve may be reluctant to step in to help.      It comes as Warren Buffett’s Berkshire… Continue reading AIG Stock Plummets to Below $9; Buffett Now in Rescue Talks?

As global insurer American International Group Inc (AIG) is looking to raise cash amid rate cuts and stocks plummeting, independent insurance agents are fielding calls from clients as to the viability of their insurance coverage.            Customers insured with AIG are questioning whether to renew their policies, whether claims will be paid and what the… Continue reading Amid AIG’s Turmoil Agents Coping with Customer Concerns

Former chief executive officer of American International Group (AIG), Maurice (Hank) R. Greenberg, said this morning in an interview with CNBC that an immediate injection of cash in the form of a bridge loan is needed to avoid bankruptcy of the giant insurer.           “If they don’t get a bridge loan either from the… Continue reading Greenberg Calls for Bridge Loan, AIG’s Downfall Would Be A Loss to America

The New York Federal Reserve is currently meeting to discuss the fate of troubled insurance giant, American International Group Inc (AIG).              Reports of a potential bridge loan, helped shares of AIG pare losses, but the company’s shares remain lower Tuesday. Earlier the stock plunged more than 40 percent in the wake of a cut… Continue reading Fed in Meetings Over AIG as the Insurer’s Stocks Tumble

We reported late last night that according to people familiar with the situation, American International Group Inc. (AIG) was looking to be propped up by $70 billion to $75 billion in loans arranged by Goldman Sachs Group Inc. and JPMorgan Chase & Co.  However, this morning, CNBC reported that inside sources said a private sector… Continue reading CNBC Reports that AIG’s Private Sector Solution is Highly Unlikely

The pressure on American International Group (AIG) continues to mount as the troubled insurer was hit by a series of credit rating downgrades. Moody’s Investors Service and Standard & Poor’s Ratings Services late Monday night each said they had lowered their ratings.            A few hours earlier, Fitch Rating had also downgraded AIG, saying the… Continue reading AIG’s Rating Downgraded