After Lehman, AIG looking at liquidating assets

[Whoa_Nelly]

Source: Economic Times

n a bid to garner $50 billion in liquidity, American International Group Inc., is making last desperate moves to avoid being downgraded by rating agencies when the markets open today. The insurer is already working on a re-structure plan that is expected to be disclosed later today.

It is pursuing a three-part plan to raise $40 billion in liquidity. Among other things, it may pursue immediate sale of airplane leasing business.

According to media reports, AIG is also in talks with Warren Buffett.






Read more: http://economictimes.indiatimes.com/News/International_Business/After_Lehman_AIG_looking_at_liquidating_assets/articleshow/3486106.cms

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And:
Source: StreetInsider.com


Citi Downgrades American International Group (AIG) from Buy to Hold, Says Stock is Arguably Inexpensive

September 15, 2008 8:32 AM EDT

Citi downgrades American International Group Inc (NYSE: AIG) from Buy to Hold. Price target dropped from $25.50 to $14.

Citi analyst says, "We believe that the implications of a potential downgrade, further large scale subprime and credit-related fluctuations and the possibility of failure offset the company's low valuation and diversification. Moreover, with the need to raise cash, a potentially dilutive capital raise and the possible sell-off of assets cloud potential future earnings power. In addition to the near term pressures through the company's capital markets unit, investment portfolio, consumer finance operations and mortgage insurance unit, we see deteriorating trends across the company's P&C and life operations as well

<snip>
American International Group, Inc. (AIG) is a holding company which, through its subsidiaries, is engaged in a range of insurance and insurance-related activities in the United States and abroad. AIG’s primary activities include both General Insurance and Life Insurance & Retirement Services operations.

http://www.streetinsider.com/Downgrades/Citi+Downgrades+American+International+Group+(AIG)+from+Buy+to+Hold,+Says+Stock+is+Arguably+Inexpensive/3988027.html

[LSdemocrat]

1. They need $40 BILLION?!? that desperately?

[halobeam]

2. doesn't the reserve only have 72 billion total?

I don't even pretend to understand what all this means, except I get elementary math. It doesn't seem that it's possible or sane to even ask for it, let alone get it.