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Sunday, insurer encircled American International Group, Inc. (AIG) is supposedly on the edge to obtain $30 more billion in funds reinflation the government the United States 'the program relief worried by S capital, or the COVER OF PROTECTION. AIG already received $40 billion as an element the COVER PROTECTION the federal reservation, independently of the government of the United States 'of the package of reinflation of S to save it going bankrupt. The federal government has 79.9% of the company now.




The supplier of total insurance based in New York and finance departments tries to fix the funds in order to continue to function after one expects that the greatest loss in the history of corporation of the United States for the fourth quarters announces Monday. AIG prepares to bring back a loss of the gigantic fourth quarters $60 billion.

The enormous loss, driving back mainly depreciations on capital including/understanding the commercial real estate, is likely to lead to the downgrades in its insurance and reputations of solvency, which will force AIG to raise the guarantee that they do not have. AIG, which until last September was the world 'insurer of the S largest, was saved of going bankrupt after reception of a first package of reinflation of government of $85 billion the United States. The federal reservation and the treasure already provided more than $150 billion the assistance to AIG and the federal government has 79.9% of the company now.


This time around the federal reservation must discover other means with reinflation AIG, because its stake cannot exceed the current limit. Without reinflation, the civils servant of EDF fear that a classification of bankruptcy is imminent, and it could be disastrous for the economy, which is sulky on its worse levels of six months there is the scenario. The reports/ratios suggested that the government of the United States revises its programme of reinflation for pin the authorities would slacken the limits, or even countermand a great part, of a loan $60 billion five years with AIG and convert billion-value $40 of the action privileged into shares. AIG can then probably turn over to a level which will enable him to meet its collateral calls and of capital.

Moreover, AIG should not pay the dividend of 10% which it must pay on the privileged action, if the privileged action would be converted into ordinary actions. AIG does not pay any dividend on the ordinary actions. Like consolation, the new plan does not consider any interest and payment of the dividends by AIG on the placement of government which it receives, relieving it of the burden of service of interest, because the government tries to maintain the insurer with flood.

AIG also supposedly plans to publish bonds supported by the $10 billion to the $15 billion in the margin its operations life insurance the United States. In exchange, the government will countermand the majority of the $37 billion in loans which the company borrowed under its facility of the credit $60 billion, all in also bringing back interest rates on future lowerings under the service to the to LIBOR to the rate.

Separately, some other reports/ratios indicated that within the framework of a new plan, AIG will break to the top its companies like prerequisite to receive more assistance of the government. AIG is during the discussions advanced with the American authorities Above a reorganization which would cut the company in at least three government-ordered divisions. Within the framework of the plan suggested, the government would permute its 80% current being held in the insurer for great stakes in three units - AIG 'operations Asian of S, its international businesses and the personal lines businesses of life insurance of the USA. A fourth unit, comprising AIG 's other companies and worried assets, also could be formed.

Other reports/ratios making the rounds were last week that AIG obtained proposals of MetLife, Inc. (MET) and Axa SA (AXA) for insurance Co. of American life, or Alico, a unit of life-insurance spanning more than 50 countries. According to the report/ratio, MetLife made a preliminary proposal for a $11.2 billion for the unit. The price is likely to decrease to approximately $8 billion because of deterioration in the unit the 'financial statement of S. For MetLife, to add Alico would bring customers in five continents, of RU in Japan. Axa 'offers S excludes Alico 'operations from S in Japan, its larger market.

While waiting, AIG is on a festival of sale to refund the loan $60 billion, received as an element of the now the massive package of the reinflation $152 billion. Earlier in month, the company said that it would sell all its companies, except the businesses of property and accident of the United States, foreign general insurance, and an interest of property for some foreign operations of the life.

On February 5, AIG agreed to sell Co. with the Ltd detail of Co. Ltd of public of bank of AIG and chart of AIG (Thailand) at the bank of Co. Ltd of public of Ayudhya. Wall Street Journal reported on February 11 that AIG was in the talks to sell its personal businesses of automobile insurance, the 21st century, at the finance departments of Zurich (ZFSVY.PK, ZFSVF.PK) for more than $2 billion.

AIG 'council of S meets today to solve an agreement with the government. If it does not establish, the possibility of bankruptcy appears indistinctly large on the company. However, since the government took the order of several of AIG 'of exchanges of defect of credit of S placed November, a bankruptcy of the company of holding could not pose the systemic risk this it in the past had. Details of a new package of delivery can be announced when AIG announces results of the fourth quarters Monday.

Of the same Friday, worried financial firm Citigroup (c) received another line of rescue of the government of the USA, reaching a business which makes it possible the government to exchange up to $25 silver billion reinflation for a greater stake at the bank. ISIC indicated that it would publish the ordinary actions in exchange of the preferred values, which would appreciably increase its common stockholders' equity or real TCE without investment of additional public of the United States. ISIC would offer to exchange the ordinary actions for up to $27.5 billion its existing preferred values and confidence preferred values at a price of conversion of $3.25 per share.

The government of the United States will match this exchange until a maximum of $25 billion face value its action privileged at the same price conversion. According to the business, the government of the United States will have approximately 36% of ISIC 'of exceptional ordinary actions of S and the existing shareholders will have almost 26% of the not deadened actions. Earlier, the $45 billion held by the government in privileged actions, rising with a stake 7.8%, when it injected the money cash in the encircled finance company.

AIG enclosed the regular session of trade of Friday 'of S with $0.42, bellow of $0.10 or 19.23% on a volume of 66.59 million shares, higher than three months the average volume of 41.19 million shares. During last the 52 weeks time, the actions had traded a broad range from $0.38 to $49.50.