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May 20, 2008: AIG Says It Needs to Raise More Money to Cover Potential Losses

2008-05-20

Martin Sullivan, chief executive officer of insurance giant AIG, says the company needs to raise a total of $20 billion to cover potential losses related to credit default swaps. Sullivan made a similar announcement two weeks earlier, but the potential problem was substantially lower then (see May 8, 2008). Shares fall to their lowest level since 1998, closing at $38.12. [Bloomberg, 9/16/2008]