New York Gov. David Paterson today agreed to allow American International Group to transfer up to $20 billion in high-quality assets from its insurance company subsidiaries to the parent company, as the huge international carrier struggled to regain the confidence of investors and avoid a potentially devastating rating downgrade.
Meanwhile, the Federal Reserve Board today reportedly asked Goldman Sachs and J.P. Morgan to help arranging up to $75 billion in loans to AIG, to help the beleaguered insurer raise cash to satisfy rating agencies about its solvency. A New York regulatory source familiar with the decision confirmed the higher number late this afternoon.
The decision came following a noon meeting between AIG, New York state insurance regulators and representatives of the Treasury Department at the offices of the New York Fed.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
