The list of financial institutions needing capital because they lost so much in the credit crisis grows by the day. Now, its the insurance company AIG. After their abysmal earnings report, they need an enormous $20 billion to tide them over.
According to MarketWatch, the news reads:
On Friday, AIG completed public offerings of new shares and other securities, raising about $13.5 billion, Chris Winans, a spokesman for the company, said in an email on Monday.
AIG is also selling hybrid securities. That offering is still taking place, with some securities sold in U.S. dollars and others in euros and U.K. pounds.
“We expect that when completed our total program including the hybrids will generate proceeds of approximately $20 billion,” Winans said.”
–MarketWatch, 19 May 2008
AIG off 9% on record loss, plan to raise $12.5 billion, MarketWatch, 9 May 2008
See also: Credit Crisis Timeline for a full list of writedowns and capital raising by institution and a timeline of the credit crunch.