(Bloomberg.com) American International Group (AIG) got a $150 billion government rescue package, almost doubling the initial bailout of less than two months ago as the insurer burns through cash at a record rate.
AIG will get lower interest rates and $40 billion of new capital from the government to help ease the impact of four straight quarterly deficits, including a $24.5 billion third- quarter loss posted today by the New York-based company.
Taxpayers will take on the extra risk to give Chief Executive Officer Edward Liddy more time to salvage AIG. The insurer, which needed U.S. help to escape bankruptcy in September, has posted about $43 billion in quarterly losses tied to home mortgages. Liddy’s plan to repay the original $85 billion loan by selling units stalled as plunging financial markets cut into their value and hobbled potential buyers.
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2 Responses
Does anyone think it would make any sense to buy AIG now? If not any good cheap stocks would be much appreciated.
The 150 is weeks old. 40 more was announced yesterday. Trades at abt 2 dollars. Can fluctuate 10 pct in a day but there are no fundamentals guiding the action. Its more like Las Vegas, just trying your luck. That’s not investing, ya know?