This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Radical AIG Restructuring Proposed: Report

American International Group (AIG - Get Report) and U.S. officials are in advanced talks over a restructuring that would divide the insurer into at least three government-controlled divisions in an attempt to keep it afloat, the Financial Times reports, citing people close to the situation.

Under the restructuring plan, the government would swap its current 80% holding in the insurer for large stakes in three units -- AIG's Asian operations, its international life insurance business and its U.S. personal lines business. A fourth unit, made up of AIG's other businesses and troubled assets, also could be formed, according to the Financial Times.

The U.S., in return, would relax the terms, or even cancel a large portion of a five-year, $60 billion loan to AIG and convert $40 billion worth of preferred stock into shares.

The final shape of the new rescue attempt could still change as talks between company executives, the U.S. Treasury, Federal Reserve and credit rating agencies continue.

People close to the situation said AIG could announce the overhaul on Monday, when it is expected to report a fourth-quarter loss of $60 billion. AIG's board is scheduled to meet Sunday, according to the Financial Times.

AIG said earlier this week it is discussing "alternative options" with regulators to keep the firm afloat as it navigates through the financial crisis.

This article was written by a staff member of

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AIG $57.51 0.00%
AAPL $127.60 0.00%
FB $83.09 0.00%
GOOG $535.38 0.00%
TSLA $205.27 0.00%


DOW 18,034.93 +208.63 1.17%
S&P 500 2,100.40 +19.22 0.92%
NASDAQ 4,994.6020 +62.7870 1.27%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs