NEW YORK (CNNMoney.com) - Insurance giant American International Group reported a stunning $62 billion quarterly loss on Monday, while government officials unveiled their latest efforts aimed at preventing the collapse of the firm.
Overwhelmed by ongoing deterioration in the credit markets and charges related to its restructuring, AIG's losses overwhelmed the firm during the fourth quarter. Its $61.7 billion loss amounted to $22.95 per share.
AIG's loss for the full year was even more dramatic - $99 billion. In 2007, the company reported a profit of $9.3 billion.
To keep the company from cratering and causing broader fallout across the financial system, the government said it would overhaul its bailout, which is aimed at helping the besieged firm unwind in an orderly way.
"Given the systemic risk AIG continues to pose and the fragility of markets today, the potential cost to the economy and the taxpayer of government inaction would be extremely high," Treasury said in its announcement.
One main goal of the revamped rescue plan - now totaling $162.5 billion - is to help boost AIG's financial position by, among other things, reducing the interest it pays the government on its loans.
Key components of the plan included the government's decision to commit another $30 billion to the firm in exchange for cumulative preferred stock. The payment, which will come from the second half of the $700 billion rescue package enacted last fall, will not be a one-time payment but AIG will able to draw down the funds as needed to help strengthen its capital base.
the community organizer can really spread the wealth
NO........... NO BAIL OUT FOR AIG!
NO BAIL OUTS FOR WALL STREET OR BANKS!
The Wall Street crooks and bankers have trillions of dollars sitting in Off-shore-banks! Let them bail themselves out!
quit trying to save AIG and other bankers, especially since they do nothing for this economy but wait for a bail out.
stop reporting on coulter, limbaugh, gingrich , boehner, mcconnell, steele and other republicans who do not have a solution, who whine and who forget if we go down if obama fails ,we all go down together. they might not like what obama proposed, they might want to inflame a society that is worried and fearful because everyday , someone is losing their jobs, homes and can't sleep at night, but their kind of ridicule, half truths aren't what we need. we all need to all sacrifice and work with this administration, including auto, banks, housing, congressional leaders , everyone to weather this storm.
But for the fact that millions of IRA's and retirement packages are attached to this company, I'd say let if fail. Unfortunately, the government has no other choice but to try to save it. I, for one, am thankful that the Bush Adminstration didn't succeed in "privatizing" social security benefits. Imagine what the consequences would have been had people invested their future social security earnings into the market? The greedy have done enough damage to our economy. Capitalism indeed.
Congress is bailing AIG out because that is who insures Congress and holds Congress' retirement. No other reason. Break it up and sell it off. And if Congress has to take a hit on their retirements, all I can say is "Welcome to the real world".
and what kind of fancy party are they going to throw with THIS money? How ridiculous, about bailing out Joe Homeowner who is losing his home and cant even afford steak., instead of tsaving these overpaid, arrogant jerks?
and what kind of fancy party are they going to throw with THIS money? How ridiculous, how about bailing out Joe Homeowner who is losing his home and cant even afford steak., instead of saving these overpaid, arrogant jerks?
the stock market is down 200 points and you are giving more of MY money to AIG, the DEMONCRATES are OUT OF CONTROL.
lets give aig billions of dollars, lets give all these other countries millions and billions of dollars, but heaven forbid if we help the American taxpayer, that would be socialism.
Please let AIG die. Just let it die already!!!
What's the use in pouring more money into this waste of a company?
Bush bails them out = " Bush just helping his rich friends on WS!"
Obama Bails them out="Obama just helping to protect jobs!"
SOME CHANGE HUH? Let hope Obama let us keep some!
Let them fall!!!!!!!!!!!!! Sick to death of them and their kind. And while your at it let Bank of America fall. Thier CEO is a disgrace!
The government will not let AIG fail because congress's retirement fund is invested in AIG.
Just let it go. The other insurance companies will buy off bits and pieces of this company. Maybe it's just to big that's part of the problem. Stop throwing money at these companies. Believe me if there is any value in any of these companies they will be picked apart. I just think it's enough already. And as far as the $900 million to Pakistan stop it. Let Pakistan take care of themselves. Why are we giving this money to the people who are clearly in partnership with the so called people who committed 9/11.
Let's just own everything. I am glad all this money is just play money and we don't have to pay for it. We can just borrow our play money from China right, Mr. Socialist Obama or is it Marxist Obama?
This is getting ridiculous. You know I no longer care if AIG is "too big to fail". As far as I am concerned ... let them fail. If they still can't get it right after all of the money they have already been given then they are clearly not worth saving.
OH FOR THE LOVE OF GOD!!!!! QUIT GIVING THESE IDIOTS MONEY!!!!!!!!
Figuring a US population of 305 million, and the govt bailout of 162.5 billion, that means approx. $532 of my tax dollars last year went directly to AIG so far.
Wonder where I can send to get that money back? :)
This must stop, the government must stop flushing our tax dollars down the toilet...let them fail!!
Had It wrote on March 2nd, 2009 10:05 am ET
"Are the CEOs and upper management still getting their bonuses? That's all that matters.
Now there is a simple minded approach. Had It is not the brightest poster.
Lotta Muni March 2nd, 2009 10:22 am ET
Obama is in control and the economy is tanking worse than ever. Some say give him time, but I say what ever happened to his promise of hitting the ground running on day one? I guess that went the way of so many of his campaign promises or pledges. The Democratic party backed the wrong horse for certain. I hope we can weather these next 4 years.
You sound like a fool. What did you think.....things were going to get better over night. President Obama has only been in office a little over 30 days. Do you really think that 8 years of inept leadership would be undone by now. President Obama has consistently informed the American people that this will take some time to recover from. FYI -the ecomony tanked way before Obama took office.
Get all the bonuses back – starting last year to now. Independent Paul is right – they should file chapter 11 and start to restructure. The big guys !! do not think for us every day people – just pad them themselfs with our tax money. There has to be an end.
The real villain is this sad story is the Credit Default Swap. The CDS is nothing more than casino gambling done by the geniuses in pinstripes (the stripes should go the other way)
These guys make bets and then sell them, and then these are resold again and again, with everyone taking their cut, (there is now FIFTY FIVE TRILLION DOLLARS OF THESE BETS) and you know who's now holding (most of ) the bag?
Any guess who's going to hold the bag after them?
I am sick of hearing that these "institutions" are TOO BIG TO FAIL!
Why do we keep re-electing the same idiots to represent us in Washington? We need term limits. We are sick and tired and hurting from what has happened to us (the people), but we keep sending the same people to Washington.
I think it is criminal to bail-out these big institutions. It seems to me the "Honorable" men and women we send to Washington are NOT SO HONORABLE. They are too busy playing games, sleeping with lobbyists and racking up pecking order points in their political orgy.
Meanwhile, we the people sit in our living rooms each evening watching the news and gritting out teeth in despair, to learn that more billions have been given to institutions having the same Bozo the Clowns running them.
Seems to me that our Congress in Washington is even a greater problem than the Wall Street Stooges, who deserve to have their "empires" crumble into ashes.
Barack is not the answer.
Bush was terrible and ths guy is worse.
Write your congress. We must stop spending money.