Billions Flood Back To AIG (AIG)
Tweet
Share
E-mail
Get Alerts AIG Hot Sheet
Join SI Premium – FREE
Illustrating the market reversal, in recent months, bailed-out insurance giant American International Group Inc. (NYSE: AIG) has received billions in payments back from banks, according to reports from the Wall Street Journal.
It is not clear how much cash that AIG has received, however the newspaper cited people close to the matter, saying that the second-quarter amount may have been more than $3 billion.
One fact that the newspaper did make clear was that Goldman Sachs (NYSE: GS) has sent at least $1 billion to AIG.
The payments are a part of credit default swaps that AIG sold as a guarantee to debt linked to subprime mortgages.
Neither AIG or Goldman Sachs would comment following the report.
The credit default swap guarantees that AIG sold was the cause of it collapsing in upon itself last year as banks in the U.S. and Europe sought collateral payments. The payments were a result of the credit default insurance that banks purchased from AIG as creit default swap protection.
AIG showed a profit in the second quarter as it begins to recover from losing nearly $100 billion last year.
Shares of AIG are currently at $36.09 before the market opens today. Goldman is at $173.82.
It is not clear how much cash that AIG has received, however the newspaper cited people close to the matter, saying that the second-quarter amount may have been more than $3 billion.
One fact that the newspaper did make clear was that Goldman Sachs (NYSE: GS) has sent at least $1 billion to AIG.
The payments are a part of credit default swaps that AIG sold as a guarantee to debt linked to subprime mortgages.
Neither AIG or Goldman Sachs would comment following the report.
The credit default swap guarantees that AIG sold was the cause of it collapsing in upon itself last year as banks in the U.S. and Europe sought collateral payments. The payments were a result of the credit default insurance that banks purchased from AIG as creit default swap protection.
AIG showed a profit in the second quarter as it begins to recover from losing nearly $100 billion last year.
Shares of AIG are currently at $36.09 before the market opens today. Goldman is at $173.82.
You May Also Be Interested In
- Anthropic plans IPO potentially exceeding SpaceX's $86B record - Bloomberg
- Bessent on bonds: buyback could be more than 4 billion - CNBC
- Musalem: strong growth and investment influencing bond market - CNBC
Create E-mail Alert Related Categories
Hot List, Insiders' Blog, Trader TalkSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
