AIG Pops On Lists And Bonuses
Shares of American International Group (AIG: 0.83) rose 66% on Monday, after the company released the names of the financial institutions that directly benefited from the Fed’s rescue loan last year. AIG is facing a lot of pressure from the government and the public after the company almost single-handedly brought down the U.S. banking industry. Since the loan was made, policymakers have been pressuring AIG to disclose more on its operations and more specifically where all of the money has gone.
Almost 80 companies (domestic and international) as well as some U.S. states have received multibillion-dollar payments from AIG, thanks to the Fed. According to a statement from AIG, banks received $22.4 billion in collateral, $27.1 billion in payments to retire credit default swaps and $43.7 billion tied to the securities-lending program. Some of the financial companies that have benefited include Goldman Sachs (GS: 93.90) ($12.9 billion), Merrill Lynch and Bank of America (BAC: 6.18) ($12 billion combined), Citigroup (C: 2.33) ($2.3 billion) and Wachovia (WB:) ($1.5 billion). Some large foreign banks also benefited from the rescue, including Barclays (BCS: 5.31) ($8.5 billion), UBS (UBS: 9.36) ($5 billion), Société Générale (GLE: 0.18), and Deutsche Bank (DB: 33.92). Large states, including California and Virginia, received billions tied to guaranteed investment contracts.
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