Officials from American International Group Inc. reported Monday they had arrived at a revised rescue plan with the U.S. government.After previously receiving a commitment from the government for $150 billion, the insurer will reportedly receive up to a $30 billion equity line in the latest round of assistance.
This news come after the fact that AIG reported Monday a $62 billion quarterly loss. The company blamed the losses on the continued deterioration in the credit markets and charges related to its restructuring.
The company's loss for the full year rings in at $99 billion. That is after the company reported a profit in 2007 of more than $9 billion.
One of the goals of the reworked bailout plan is to assist AIG's financial position by, among other things, decreasing the interest it gives the government on its loans.
The Treasury Department in turn will exchange its existing $40 billion preferred shares stake for shares that more closely look like common stock.
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1 comment:
What a mess, huh. Our tax money goes to AIG who turns around and give a chunk to employees who played a role in nearly sinking the ship. What a country.
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