Dance like no one's watching

By Craig Torres Sept. 16 (Bloomberg) — The Federal Reserve Board, with support of the U.S. Treasury, invoked emergency powers to lend up to $85 billion to American International Group Inc. to save the firm from collapse. “The Board determined that, in current circumstances, a disorderly failure of AIG could add to already significant levels […]

AIG has the capability to bail itself out by selling profitable assets/subsidiaries. AIG requires bridge loan of USD40b from the Federal Reserve in the interim. Fed Reserve pressures authorities to allow AIG to borrow USD20b from its subsidiaries instead. Quick pull on the trigger by credit rating agencies results in AIG having to post a […]

By Hugh Son Sept. 16 (Bloomberg) — American International Group Inc. investors led by former Chief Executive Officer Maurice “Hank” Greenberg may consider taking control of the insurer through a proxy fight or buyout. The investors also are considering acquiring New York-based AIG’s subsidiaries or making loans to the company. They disclosed their options today […]

By Erik Holm and Christine Richard Sept. 16 (Bloomberg) — A collapse of American International Group Inc., the insurer seeking to raise as much as $80 billion, would have consequences for financial firms around the globe, analysts and investors said. Wall Street’s top firms, and the biggest companies in Europe and Asia, have bought protection […]