View more on these topics

AIG losses tip $99bn

Troubled insurance giant AIG has revealed that it lost just over $99bn, or £69.54bn, in 2008.

For the fourth quarter of 2008, AIG reported a net loss of $61.7bn or $22.95 per diluted share, with an adjusted net loss of $37.9bn, or £26.8bn or £10 per diluted share, totalling just less than $100bn or £69.54 in losses.

AIG says its results in the fourth quarter were negatively affected by continued severe credit market deterioration, particularly in commercial mortgage backed securities, and charges related to ongoing restructuring-related activities.

The US Treasury will, thanks to the continuing losses, create a new equity capital facility, which allows AIG to draw down up to $30bn, or £21.22bn as needed over time in exchange for preferred stock to the U.S. Treasury. This, on top of the $40bn, or £28.29 the government has already invested into the insurer.

AIG chairman and chief executive Edward M. Liddy says: “The economy and capital markets remain in turmoil and we are taking additional steps to preserve the value of our businesses and maximize the ultimate proceeds for the benefit of all stakeholders, including US taxpayers.”


FTSE closes in on 3,500 mark

The FTSE 100 is set to fall through the 3,500 barrier having closed today at 3512.09.

A burden on societies

Last week, some of the biggest building societies posted profits, no mean feat in itself, but profits that were slashed by as much as 50 per cent thanks to Financial Services Compensation Scheme levies hiked up in the wake of the Icelandic bank crash and the Bradford & Bingley bailout.


Out from the long grass? An IT and NI merger

Those with a long memory will recall that at the start of the last parliamentary term George Osborne announced his intention to merge income tax (IT) and national insurance (NI).  Headline grabbing as the initiative was, the reality of the complexities, challenges and costs of such a move resulted in this idea being kicked into the political long grass.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm