The 6am cut - Alphaville by email

Most Popular Posts

  1. Fancy being an FT Alphaviller?
  2. Further reading
  3. Pink Picks
  4. 'Not as bad as feared' is the new code for 'buy, buy, buy'
  5. End of crisis metrics
  6. Show more...
  7. Show less...
  8.  

Blogs we're reading

Classified Jobs

Finance Director
Recruiter: First Choice Coffee
Finance Director
Recruiter: Retail
Commercial Finance and Bid Director
Recruiter: dunnhumby
Head of Budgeting and Financial Information
Recruiter: Peabody Trust
Head of Internal Audit
Recruiter: Meggitt
Director of Decision Support
Recruiter: Lloydspharmacy
Group Financial Controller
Recruiter: Agilisys
Vice President, Audit Manager
Recruiter: Leading Investment Banking Group

Site Navigation


Principal content

AIG plunges to record loss

The crisis at American International Group deepened on Thursday, after $15bn in credit-related writedowns plunged the US insurer into a record quarterly loss and prompted plans to raise $12.5bn in fresh capital. The losses exceeded Wall Street’s expectations and prompted S&P to lower AIG’s credit rating by one notch to double-A-, increasing investor pressure on Martin Sullivan, chief executive. AIG also announced it was seeking a new chief financial officer after Steven Bensinger, the finance chief, was moved to the financial services unit as vice-chairman. Including almost $15bn in Q4 losses and writedowns, the credit crisis has cost AIG more than $30bn.

This entry was posted by Gwen Robinson on Friday, May 9th, 2008 at 5:43 and is filed under Capital markets, People. Tagged with . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Email this story
Add to Del.icio.us
Share on Facebook
Digg this post
RSS Feed

Comments

  1. May 09   10:22 Posted by Angelos Taplatzidis [report]

    I am following up eagerly on the recent global financial turmoil since its onset. Today’s AIG and Citigroup news made me wonder where all the lost money goes…

    All I mean is, recent rough estimates calculate losses exceeding $350 billion and in my search for who is making this money I get no answer. So, I pursue salvation upon a query that should be of mass appeal “Who is gaining from the US credit crunch, where do all this money goes?”

  2. May 09   10:04 Posted by TheWord [report]

    No, no. Someone’s made a terrible mistake. Insurance companies (unlike investment banks) are experts in pricing risk. That’s their Raison d’être.

    Must all be a horrible misunderstanding.

Have your say...

You must be logged in to post a comment. Log in using the box at the top right of the screen or open a free account with FT.com and click on the "Continue" button at the end of that registration process.