AIG might need more money

AIG has borrowed $90.3 billion from the federal government, surpassing its original $85 billion rescue loan.
OCT 24, 2008
By  Bloomberg
AIG has borrowed $90.3 billion from the federal government, surpassing its original $85 billion rescue loan. American International Group Inc.’s debt is $7.4 billion more than it was last week, according to the New York Federal Reserve Bank. The government in September extended an $85 billion bridge loan to the troubled company to keep it afloat. This month, the government gave New York-based AIG access to an additional $37.8 billion. However, that may not be enough money for the insurer, according to AIG’s chief executive, Edward Liddy, who spoke on “The NewsHour with Jim Lehrer” Wednesday evening. Whether the carrier needs an additional cash injection from the federal government depends on two factors: AIG’s ability to stop the bleeding in its financial-products area and what happens in the capital markets. Falling asset values in that area are a primary reason that the company blew through its lifeline so quickly, Mr. Liddy said. “To the extent [the capital markets] continue to go down and we have to keep posting collateral, it’s possible that it may not be enough,” he said on the show. Nevertheless, Mr. Liddy said, some of the initiatives taken on by the Federal Reserve since AIG’s rescue have helped to thaw the markets and that the insurer “should be OK.”

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.