NEW YORK (TheStreet) -- American International Group (AIG) - Get Report was a financial sector winner Friday following its second-quarter report and news that it's already talking to the government about plans to pay back bailout funds.
reported a net loss in the second quarter of $2.7 billion, or $3.96 a share, down from year-ago earnings of $1.8 billion, or $2.30 a share, in the same period a year earlier.
But the shares closed up $1.03, or 2.58%, at $40.93 as CEO Robert Benmosche said in a recorded call on the company's Web site that the company is already in talks about a plan for the government to exit its bailout-related holdings in the company.
"We expect to make meaningful progress in 2010 on repaying the Federal Reserve Bank of New York, and over time, fulling repaying all of our obligations to taxpayers," Benmosche said in the message.
AIG added in its Form 10-Q filing with the
Securities and Exchange Commission
that accompanied the release of the results that any payback plan could require the issuance of a "large number" of additional common shares and/or the disposition of non-core assets to the government, and it warned this could lead to "significant dilution" of current shareholders.
Separately, several large banks were also trading down on news that a rise in jobless claims could stall the nascent economic recovery.
, which was down .47% to $155.18 and
which shaved .68% off its share price to $27.65.
declined 2.01% to $40.44 and
fell .98% to $4.06.
Bank of America
was also down .43% to $13.96 at the end of the trading day after published reports said that several private equity firms are bidding on its proprietary trading desk.
-- Written by Christopher Westfall in New York