Saturday, November 8, 2008

AIG In Talks With Government To Formulate New Bailout Ahead Of 3Q Report

New York, NY (AHN) - American International Group Inc. (AIG) is reportedly in talks with the U.S. government and the regulators to seek a new rescue package, the reports said Saturday.

The troubled insurer has been discreatly meeting with the government officials to restructure its credit facility, just two months after the company received a bailout of $85 billion loan from the Federal Reserve.

Some reports are speculating that the details on the talks may be released by Monday, then the company is expected release its third quarter earnings report that is anticipated to record losses.

The talks have remained private as no deal has been reached between the participants on the terms including reducing the interest rate on the recent bailout or increasing the loan's two year period.

In September, the authorities also loaned American International Group Inc. upto $85 billion to shore up its finances and to prevent it from collapsing. The company is expected to receive around $144 billion in total from the government.

Last month, the company received $37.8 billion in loan from the Federal Reserve Bank of New York and last week the firm asked for an additional $20.9 billion through the Fed credit line.

Once the world's largest insurer is expected to report a third quarter loss of 90 cents per share on revenue of $18 billion, compared to its earnings of $1.53 per share on revenue of $29.84 billion a year earlier in the same period.

RSS Feed
Email Subscribe
Tell a Friend