Published on Mon, Sep 15, 2008 at 16:47 | Source : CNBC-TV18
Updated at Wed, Sep 17, 2008 at 09:17
Like this story, share it with millions of investors on M3
0
Like this story, share it with millions of investors on M3
Cash-strapped AIG asks Fed for $40-bn lifeline
There are more signs of trouble. Cash-strapped insurer, AIG is expected to announce a restructuring plan today, reports CNBC. It will pursue a three part plan to raise USD 40 billion.
There are more signs of trouble. Cash-strapped insurer, AIG is expected to announce a restructuring plan today, reports CNBC. It will pursue a three part plan to raise USD 40 billion. The company is attempting to create USD 50 billion liquidity before tomorrow's opening bell. It is also trying to avoid downgrades from rating agencies and is in talks with Warren Buffett for a possible takeover. It is also working towards an immediate sale of its airplane leasing and domestic auto finance business.
Earlier, AIG had made an unprecedented approach to the Federal Reserve seeking short-term financing, reports CNBC-TV18. The largest US insurer-by-assets has asked the Federal Reserve for a USD 40 billion bridge loan after rejecting an offer from buyout firm JC Flowers & Co. AIG had lost about USD 30 billion in the last three quarters.
