AIG: Financial Winners & Losers

AIG rose on a report the insurer is working to restructure the sale of its Asian unit.
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) --

American International Group

(AIG) - Get Report

was among the winners of the financial sector Tuesday after a report the insurer is working to restructure the sale of its Asian unit.



Prudential PLC

(PUK) - Get Report

are in advanced talks to restructure the $35.5 billion sale of AIG's American International Assurance, or AIA, unit,

The Financial Times

reports, in order to allay concerns of the U.K.'s Financial Services Authority.

Under the new terms being discussed, the U.S. government would receive some $2 billion less in cash than the $25 billion foreseen by the original plan, the report said. Insiders told

The Financial Times

that AIG was seriously considering the new terms, although the insurer's board has not yet made a final decision.

Meanwhile, AIG CEO Robert Benmosche told employees Monday that he is confident the AIA deal to would move forward, a source familiar with the situation told



AIG shares were lately up 64 cents, or 1.6%, to $41.62. Prudential PLC shares trading in New York fell 2.4% to $15.93.

Like Prudential, many overseas financial stocks were stumbling one day after recording sizeable gains following word that European leaders agreed to a $1 trillion package to rescue European nations plagued by debt.

Among them,

Royal Bank of Scotland

(RBS) - Get Report

sank 5% to $14.52,

Banco Santander


lost 4.9% to $11.50,

National Bank of Greece


was down 4.6% to $2.93,

Allied Irish Banks


fell 4.7% to $3.43, and

Lloyds Banking Group

(LYG) - Get Report

was off 2.5% to $3.52.

Among U.S. bank stocks,

Goldman Sachs

(GS) - Get Report


JPMorgan Chase

(JPM) - Get Report

traded lower following a report in

The Financial Times

that both firm saw their trading operations turn a profit every single business day in the first quarter, a first for both companies.

Goldman Sachs'

trading operations saw profit of at least $25 million on each of the quarter's 63 working days, the report said, citing a regulatory filing issued on Monday. JPMorgan, meanwhile, made an average of $118 million a day, the report said.

Goldman Sachs shares were lately down 0.3% to $143.34, and JPMorgan lost 0.9% to $41.59.

Among other major U.S. bank stocks,


(C) - Get Report

fell 1.9% to $4.14,

Morgan Stanley

(MS) - Get Report

slid 1% to $28.56,

Bank of America

(BAC) - Get Report

slipped 0.8% to $17.16, and

Wells Fargo

(WFC) - Get Report

was off 0.1% to $32.94.

On the earnings front,


(MBI) - Get Report

swung to a first-quarter loss of $7.22 a share from a year-ago profit of $3.34 a share. The current quarter loss came as MBIA recorded a $2.2 billion pre-tax unrealized loss on insured credit derivatives. MBIA shares were down 7.3% to $8.65.


Assured Guaranty

(AGO) - Get Report

said after Monday's close that it had first-quarter adjusted earnings of 44 cents a share, below the Thomson Reuters average estimate of 73 cents a share. Shares plummeted 11.3% to $17.72.

-- Written by Robert Holmes in Boston


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