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AIG Pops On Lists And Bonuses
By: Bullish Bankers   Tuesday, March 17, 2009 10:32 AM

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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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The above story is the opinion of the author only and it does not reflect iStockAnalyst opinion. Further, the author is not personally advising you regarding the suitability of the story for your investment needs. In no event iStockAnalyst will be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from or arising out of, or in connection with the use of this information. Please consult your investment advisor before making any investment decision.
  
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