Talk about mixed messages.
AIG posted a steep $7.8bn first-quarter net loss, wrote down $9.1bn in CDS contracts, said it would try to raise $12.5bn - and then promptly raised its dividend by 10 per cent.
Baffling behaviour for a company that needs to raise fresh capital in order to “fortify its balance sheet” and “enhance its ability to grow”.
Shareholders were similarly unconvinced - the stock fell 8 per cent in after-hours trading in New York.
Related links:
