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AIG Warns It May Need More Government Help

American International Group Chairman and CEO Edward Liddy is warning that the $123 billion in assistance provided to it by the federal government may not...
October 29, 2008

American International Group Chairman and CEO Edward Liddy is warning that the $123 billion in assistance provided to it by the federal government may not be enough. Last week, the Federal Reserve Board disclosed that AIG's borrowings are now at $90.3 billion as of Wednesday.

Of that $90 billion, $18 billion is being provided under securities lending facilities and $72.3 billion has come from the $85 billion loan provided by the government on Sept. 17 in exchange for 79.9 percent of the company's stock, according to Joseph Norton, an AIG spokesman.

Liddy said AIG is in the process of cutting costs as it seeks to preserve cash while it tries to sell off assets in a market environment that continues to get worse. "Clearly, we'd prefer to be doing this asset sale a year ago or two years ago than right now, but I think there will be plenty of excellent demand for what are really very, very good assets," Liddy said.

AIG May Need More Gov't Help (National Underwriter 10/24/08)