American International Group(AIG - Cramer's Take - Stockpickr) plans to absorb as much as $5 billion in losses from its insurance units hit by $13 billion in writedowns, Bloomberg reported Friday.
Bloomberg, citing Christopher Swift, vice president for life and retirement services, said AIG was increasing the amount of losses it would take on from a dozen units, up from an earlier commitment of $500 million. It also may inject an undisclosed amount of capital in some units, the article said.
AIG has been reeling since being forced to raise $20 billion to cover $7.81 billion in first-quarter losses tied to the writedowns of its portfolio of credit derivatives and mortgage-related products. The company earlier this month fired CEO Martin Sullivan and replaced him with Chairman Robert Willumstad.
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this is probably leading to layoffs
Bloomberg, citing Christopher Swift, vice president for life and retirement services, said AIG was increasing the amount of losses it would take on from a dozen units, up from an earlier commitment of $500 million. It also may inject an undisclosed amount of capital in some units, the article said.
AIG has been reeling since being forced to raise $20 billion to cover $7.81 billion in first-quarter losses tied to the writedowns of its portfolio of credit derivatives and mortgage-related products. The company earlier this month fired CEO Martin Sullivan and replaced him with Chairman Robert Willumstad.
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this is probably leading to layoffs