This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
TheStreet Open House

AIG: Financial Winners and Losers

Stocks in this article: AIG

( Updated with stock price moves.)

NEW YORK ( TheStreet) -- American International Group (AIG) was among the winners of the financial sector Tuesday on comments from a ratings agency that the insurer is moving towards repaying bailout funds.

AIG shares jumped Tuesday after Moody's Investor Services said the insurer will likely be able to repay the government's loan and much of its preferred equity stake.

Last week, AIG reported a third-quarter profit of $455 million, or 68 cents a share. Excluding items, AIG earned $2.85 a share, beating Wall Street's forecast of $1.98 a share. Moody's said that, if AIG continues to stabilize, it will likely generate enough value to repay the government.

Moody's maintained its credit rating on the stock, affirming the long-term rating of A3 with a negative outlook. Lately, AIG was up $1.66, or 4.6%, to $37.84.

In other insurer news, MBIA (MBI) shares fell sharply after the bond insurer late Monday reported a third-quarter net loss of $727.8 million, or $3.50 a share, as a result of increased unrealized losses on credit derivatives.

Deutsche Bank said its own calculations puts MBIA's operating loss at $1.24 a share for the quarter, which would be worse than the Thomson Reuters average estimate of $1.05 a share. MBIA shares were tumbling 97 cents, or 20.2%, to $3.83. Ambac Financial (ABK) traded lower in sympathy, dropping 12.7% to $1.03.

Turning to bank stocks, Reuters reported that JPMorgan Chase (JPM) will lift a salary freeze it put in place last year for employees making more than $60,000 a year, citing an internal bank memo.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 17,719.00 +33.27 0.19%
S&P 500 2,052.75 +4.03 0.20%
NASDAQ 4,701.8670 +26.1550 0.56%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs