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AIG to return $50M in bonuses

aig AIG to return $50M in bonusesAIG has said today that its financial products division will in fact return $50 million in bonuses amid a public uproar given the U.S. fed has provided the failing company with $170 billion in aid.

15 AIG executives from the financial products’ is set to return $30 million, and the rest of the $50 million coming from other AIG division.

Obama has been widely criticized for the recent bill passed by The House of Representatives who imposed a 90% tax on bonuses aimed at executives who earned more than $250,000 of firms who got more than $5 billion in government aid.

In Q4 2008, AIG posted the largest corporate loss recorded in America, $61.7 billion.

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Obama Moves to Block $165M AIG Bonuses

aig Obama Moves to Block $165M AIG BonusesAmerican International Group (AIG), is planning to pay about $165 million in bonuses. Today, President Obama said at the White House he plans to explore every legal avenue to block the payments. Obama said today at the White House, “This is a corporation that finds itself in financial distress due to recklessness and greed…how do they justify this outrage to the taxpayers,” Read the full story

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AIG Posts Largest Quarterly $66B Loss in US History, $99B for 2008

aig AIG Posts Largest Quarterly $66B Loss in US History, $99B for 2008American International Group (AIG) has just posted the biggest U.S. quarterly loss ever recorded in history, a whopping $61.7 billion ($22.95 per share) Q4 2008 loss, compared to a $5.3 billion ($2.08 per share) loss in Q4 2007. The American government has also opted to give AIG $30 billion in new loans. Q4 2008 revenue was down $23.8 billion. AIG’s insurance division reported a loss of $2.8 billion with premiums down 16.3% to $9.2 billion. For all of 2008, AIG posted Read the full story

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BMO to Buy AIG Canadian Life Insurance Division for $375M

The Bank of Montreal (BMO) has announced today that it will buy AIG’s Canadian Life Insurance business for CND $375 million. The purchase should be done by June 1 2009 and it is expected to increase BMO’s earnings as the AIG business generated $571.4 million by the end of Q2 in 2008. BMO has said the acquisition will provide its clients with a broader range of investment opportunities.

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AIG to Sell HSB Division for $742M to Munich Re

aig AIG to Sell HSB Division for $742M to Munich Re
AIG will sell its profitable Hartford Steam Boiler (HSB) division for $742 million to Muinch Re as the acquisition aligns with Munich Re’s plans of expanding U.S. operations. HSB grossed $904 million in 2007 and posted a net profit of $158 million. AIG is selling the unit as it continues to struggle from the credit crisis as it tries to raise money to repay government issued emergency loans. AIG purchased HSB for $1.2 billion 8 years ago. Munich Re said the purchase will not affect its EUR 5.5 expected dividend.

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AIG Sells $39.9B in Mortgage Backed Securities, SEC Charges Siemens AG for Bribery

AIG has announced it will sell $39.9 billion worth of residential mortgage backed securities to Maiden Lane II LLC, which is operated by the NY Fed Reserve, in hopes of helping AIG discard the bad securities. Part of the deal, the NY Federal Reserve will get $19.8 billion according to the SEC.

In other news, the SEC has charged Siemens AG for “engaging in a systematic practice of paying bribes to foreign government officials to obtain business.”

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AIG Owes Firms $10B from Bad Bets

aig AIG Owes Firms $10B from Bad Bets

The Wall Street Journal is reporting AIG owes firms up to $10 billion because of bad trades with CDOs, Corporate Debt, Commercial Real-estate and other derivatives. The company owes money to Goldman Sachs because Abacus (a Collateralized Debt Obligation developed by Goldman) has fallen in value. The amount is not disclosed but it is likely a significantly portion of the total amount owed. AIG is now trying to raise money to repay the bets and the $10 billion is not covered by the Feds $150 bailout that AIG has to also repay.

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AIG Sells Private Bank Division

American International Group Inc. has announced today that it will in fact sell its wealth management AIG Private Bank division to Aabar Investments. The bank will now provide the same wealth management services under a different name and will be headquartered in Switzerland. The current senior management will continue to work at the bank. AIG is selling this division as it tries to raise much needed cash not only to survive the financial crisis but to also raise money to pay back the $85 billion US federal aid loan. No further details, including financial details, were disclosed about the deal. AIG says it has no plans to sell off any of its American businesses or its foreign insurance businesses.

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