The government presented Monday a new rescue plan for insurance giant American International Group and the companies in trouble in another 30 billion U.S. dollars in a "necessary".The new package is that the company was burning cash and not in a position to buyers for parts of the company she hopes the government in its current assistance amounting to around 150 billion U.S. dollars.
In an interview on the NBC "Today" show Monday, AIG President and CEO Edward Liddy, said: "We are in a position to reimburse the Federal Reserve. The new $ 30 million one of the. It is not necessarily something that we believe that we are now. "
The announcement was made that AIG, once the largest insurer in the world, said Monday it lost 61.7 billion U.S. dollars in the fourth quarter, the biggest quarterly loss in the history of American business.
Under the new package, the Fed ended its involvement in two international units.
Instead, pay 38 billion U.S. dollars in cash with interest, which was in a line of credit from the Federal Reserve, AIG now that amount to pay with shares of Asia-founded American International Assurance Co. and American Life Insurance Co., which is in 50 countries.
It is the fourth time that the government has taken action to AIG. His first help came in September. The action was on Monday at the start of the U.S. Treasury Department and the Federal Reserve.
The new package is planned for the capital and liquidity to ensure the smooth flow of sales throughout the world, "he told the agencies.
He says that the company has not before "significant challenges" as the rapid deterioration of some of the financial markets in the last two months of the year. "The additional resources will help in stabilizing the society, and thus help to stabilize the financial system," he told the agencies.
AIG is a colossus on Wall Street and Financial District in the world, with more than 130 countries and 1 billion U.S. dollars of assets in the balance sheet.
The government waited until last year involved to AIG, the company is too large. Collapse in damage in the financial system and the U.S. economy and stock.
Besides life, property and other offers of AIG has insurance of asset management and leasing of aircraft. His large number of companies are also linked to mutual funds, pensions and other products in the possession of the retired in millions of U.S. citizens.
But perhaps the biggest concern about AIG is breathtaking from the complex financial instruments, structured for commercial banks, investment banks and hedge funds around the world - many of them are directly or indirectly related to the value of U.S. mortgages.
In his benefit, with headquarters in New York, AIG said it lost $ 22.95 per share in the last three months of the 2008th They lost 5.3 billion U.S. dollars, or $ 2.08 per share, in the same quarter a year ago.
The latest results include 7.2 billion U.S. dollars in credit losses and writedowns on financial AIG, the source for credit default swaps, and the loss before taxes of 21.6 million U.S. dollars in connection with the decrease in the value of the investment portfolio of AIG.
AIG General Insurance had a loss of 2.8 billion U.S. dollars losses, net capital reached. Net premiums written for general fell 16.3 percent to 9.2 billion U.S. dollars and net premiums earned decreased by 5.9 percent to around 11 billion U.S. dollars.
Adjusted to exclude certain components, the operating losses totaling $ 37.9 billion, or $ 14.17 per share, compared with a loss of 3.2 billion U.S. dollars, or $ 1.25 per measure, which in the past year.
The results significantly below the estimates. The analysts surveyed by Thomson Reuters, on average, the forecasts of view, a loss of 37 cents per share on sales of $ 24.82 billion. Analysts were of coverage of AIG in recent weeks because of the uncertainty about the future of AIG.
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