View all newsletters
Have the short, sharp Spear's newsletter delivered to your inbox each week
  1. Wealth
March 3, 2009

Guardian: AIG biggest loss ever, Dow below 7,000

By Spear's

The crisis-stricken insurance company AIG has crashed $61.7bn (£43bn) into the red with the biggest corporate loss in US history after being crippled by policies protecting troubled banks against default on loans and derivatives.

From the Guardian:

The crisis-stricken insurance company AIG has crashed $61.7bn (£43bn) into the red with the biggest corporate loss in US history after being crippled by policies protecting troubled banks against default on loans and derivatives.

In a renewed effort to prevent AIG from collapsing, the US government yesterday provided it with access to $30bn of emergency aid. This takes the amount of taxpayers’ funds advanced to AIG to more than $150bn.

Chief executive Ed Liddy, who was appointed under the instructions of the US government in September, said AIG was too large to be allowed to fail. “Quite simply, the government believes, and we do also, that AIG is a systemically important financial institution,” he said on a conference call in New York.

“There are just too many ­people and too many institutions in the world that depend on the promise represented by an AIG commitment.”

The massive AIG loss sent the Dow Jones industrial average into a tailspin, falling below 7,000 for the first time since 1997 and ending the day nearly 300 points down on 6,763, a fall of 4.2%. The Standard & Poors 500 also fell – finishing the day at just over 700 after a slump of 4.7%.

To read the full article, visit guardian.co.uk
 

Content from our partners
How the Thuso Group’s invaluable experience and expertise shaped the Spear’s Schools Index 2024
AP Executive: Your Trusted Global Partner in Wealth Management Recruitment
A League of Their Own

Select and enter your email address The short, sharp email newsletter from Spear’s
  • Business owner/co-owner
  • CEO
  • COO
  • CFO
  • CTO
  • Chairperson
  • Non-Exec Director
  • Other C-Suite
  • Managing Director
  • President/Partner
  • Senior Executive/SVP or Corporate VP or equivalent
  • Director or equivalent
  • Group or Senior Manager
  • Head of Department/Function
  • Manager
  • Non-manager
  • Retired
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
Thank you

Thanks for subscribing.

Websites in our network