A.I.G reports $2.4 billion loss in 3rd quarter

In the third quarter of the financial year, A.I.G announced its enormous loss of  $2.4 billion dollars.  In this article the loss of $2.4 billion dollars represents the financial statement of A.I.G in the third quarter and how its restructuring project is negatively impacting it’s financial statement.  Although A.I.G has struggled with their restructuring project they claim that their current endeavor to repay its taxpayer-financed balance is on track.

Another aspect of this article relates to A.I.G’s government stakes.  A.I.G hopes to prevail the approval to start selling these government stakes in order to rebuild their financial stability.  After A.I.G’s second consecutive quarterly loss that arose from $4.5 billion worth of charges associated with numerous asset sales there is certainly financial concerns for the company.  Earlier this fall, AIG announced that it would initiate a plan to repay its $130 billion in government rescues that include a large portion of the ownership stakes.  The optimistic attitude of CEO, Robert Benmosche plans to start selling these stakes at the end of the first quarter in 2011.  This cutback of the government’s ownership of the company has been a main priority for A.I.G.  This cutback would signify the company’s ability to maintain an independent business that doesn’t have to rely on taxpayer support.  Looking into the future it will be quite interesting to see where the ownership of A.I.G’s stakes are redistributed and the impact it brings to the company’s financial stability.

Resources: http://dealbook.blogs.nytimes.com/2010/11/05/a-i-g-reports-2-4-billion-loss-in-3rd-quarter/