Search
Saturday Sep 6 2008
All times are London time
All times are London time
The 6am cut - Alphaville by email
Most Popular Posts
- Further reading
- What killed the Ospraie?
- Draaisma: "We're in the dull phase"
- Further reading
- Further reading
- Cheap or spicy? - the polarisation in asset management
- Bank run
- Market "capitulation"
- Fear not, City of London
- The Chinese don't like Frannie...
- Show more...
- Show less...
Blogs we're reading
- 1440 Wall Street
- Abnormal Returns
- Alea
- All About Alpha
- Arbitrage View
- Bespoke Investment Group
- Big Picture
- Brad Setser: Follow the money
- Bronte Capital
- Calculated Risk
- Capital Chronicle
- Capitalist Resistance
- Credit Writedowns
- Crossing Wall Street
- Deal Journal
- Dealbook
- Dealbreaker
- Deus Ex Macchiato
- Felix Salmon
- Financial Armageddon
- Financial Crookery
- Fintag
- Free Exchange
- Infectious Greed
- Information Arbritrage
- Intelligent Mergers
- Interactive Investor
- Jeff Matthews
- Marketbeat
- Naked Capitalism
- Naked Shorts
- Nouriel Roubini
- Paul Wilmott
- Practical Risk Management
- Random Roger
- Reuters DealZone
- Robert Peston
- Short Stories
- Sudden Debt
- The Aleph blog
- The Epicurean Dealmaker
- The Oil Drum
- The price of everything
- Ultimi Barbarorum
- Wallstrip
Classified Jobs
- Director of Finance and Corporate Services
- Recruiter: NSPCC
- Head of Customer Service - Savings
- Recruiter: Nationwide Building Society
- Business Analyst
- Recruiter: Credit Suisse
- Head of Finance
- Recruiter: ESCP-EAP
- Group Chief Accountant
- Recruiter: Misys
- Lead Economist, Development Research Department
- Recruiter: African Development Bank
- Finance Manager
- Recruiter: London 2012
- Group Manufacturing Leadership Programme
- Recruiter: The Royal Bank of Scotland Group
Site Navigation
Principal content
Abert edwards AllianceBernstein allianz altria atticus babcock & brown bank of england barclays bill gross bill thompson blackstone british energy CALSTRS carlyle china development bank china merchants bank China Netcom commerzbank corus covered bonds cpdo Dollar Dresdner Bank ecb edf informa invesco Lehman Brothers M&G mohamed el-erian Moodys natixis Ospraie pimco providence RAB rbs rouble russia Spinco Tata Group tata steel telefonica UST Washington Mutual Wing Lung Bank
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.
- Advertise with the FT
- Press enquiries
- Student offers
- FT Conferences
- FT Research Centre
- Corporate subscriptions
- FT Group
- Partner sites: Chinese FT.com
- Les Echos
- FT Deutschland
- Expansion
- © Copyright The Financial Times Ltd 2007. "FT" and "Financial Times" are trademarks of The Financial Times Ltd. Privacy policy
- Terms
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?”
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.