AIG in talks with U.S. government for more bailout money!
NEW YORK - February 24, 2009 - American International Group Inc. (AIG), rescued twice last year by the U.S. government, is asking for more aid and bracing for a fourth-quarter loss of roughly 60 billion USD, a source familiar with the matter said. It would be the biggest loss in a quarter in corporate history.
The 60 billion USD would exceed Time Warner's 54 billion USD single-quarter loss in 2002 and dwarf the 24.5 billion USD loss AIG posted in the third quarter, when the government increased its rescue package for the insurer to about 150 billion USD.
By contrast, two analysts polled by Reuters Estimates have forecast on average a net loss of 5.46 billion USD.
The latest round of talks with the government include the possibility of additional funds for the insurer and trading debt for equity, another source said on Monday.
The situation is fluid and other options are being discussed, this second source said, adding that it was unclear where the talks would lead.
