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While American International Group Inc. fights to stay afloat, its state-domiciled subsidiaries remain sound, state regulators said as officials held talks on the AIG units in their jurisdictions.    “It’s changing by the minute at the holding company level,” Connecticut Insurance Commissioner Thomas Sullivan said. “Nothing’s changing at the subsidiary company.”    Regulators from Pennsylvania,… Continue reading State Insurance Commissioners Say AIG Subsidiaries Solvent

The Securities and Exchange Commission issued three new rules, effective at the start of trading Thursday, aimed at curbing a certain type of short-selling Wall Street and others have blamed for driving down financial stocks.    The new moves are aimed at tightening up the existing rules and to make it more difficult for traders… Continue reading SEC Issues New Rules to Curb Some Short Selling

Falling below expectations to the lowest level in 17 years, home construction tumbled a second month in a row during August, according to the Commerce Department. Housing starts decreased 6.2% last month to a seasonally adjusted 895,000 annual rate. Single-family home groundbreakings also declined, and building permits fell sharply. Economists surveyed by Dow Jones Newswires… Continue reading Housing Starts the Lowest in 17 Years

According to people familiar with the matter, as part of the U.S. government’s rescue of the insurer, American International Group Inc. (AIG) Chief Executive Officer Robert Willumstad will be replaced by former Allstate Corp. chief Edward Liddy.    The Wall Street Journal reported that Treasury Secretary Henry Paulson insisted that Mr. Willumstad step aside as… Continue reading The Buzz: AIG’s Willumstad to be Replaced with Allstate’s Edward Liddy

New York State Insurance Superintendent Eric Dinallo in an interview with CNBC said that insurance companies have gotten away from their core competencies and that is “dangerous.”    “There is a theory that diversification of financial services activities gets you risk management, but it is only true if you stay within your core competencies,” Dinallo… Continue reading Dinallo: Insurers’ Troubles Due to Departure from Core Competencies

Reports are buzzing about on Wall Street that Morgan Stanley officials are weighing whether the firm should remain independent or merge with a bank given the recent turbulence in the company’s stock.      As of late Tuesday Morgan officials were not in merger discussions, according to people close to the matter. But senior people at… Continue reading Morgan Stanley Looking to Avoid Lehman Fate with Talk of Merger

The Board of Directors of American International Group, Inc. (NYSE:AIG) issued the following statement in response to today’s announcement by the Federal Reserve Board that the Federal Reserve Bank of New York is providing a two-year, $85 billion secured revolving credit facility to AIG that will ensure the company can meet its liquidity needs:   … Continue reading AIG Releases Statement on Fed’s Loan Plan

The following is the text of a statement released by the Federal Reserve on Tuesday regarding insurer American International Group Inc (AIG):          The Federal Reserve Board on Tuesday, with the full support of the Treasury Department, authorized the Federal Reserve Bank of New York to lend up to $85 billion to the American International… Continue reading Fed Releases Official Statement on AIG

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