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May 8, 2008: AIG Says Needs Additional Money to Protect against Writedowns

2008-05-08

After announcing another record loss for the first quarter of 2008 (see January-March 2008), insurance giant AIG says it needs to raise $12.5 billion to protect against further possible writedowns due to problematic investments related to the US housing market. In addition, Standard and Poor’s and Fitch Ratings cut AIG’s credit rating after it announces the loss and the fact that it made more than $15 billion in first-quarter writedowns tied to credit default swaps and mortgage-backed securities. [Bloomberg, 9/16/2008]