Friday, May 9, 2008

AIG plunges to record loss

AIG plunges to record loss

By Francesco Guerrera and Justin Baer in New York

Published: May 9 2008 00:56 | Last updated: May 9 2008 00:56

The crisis at American International Group deepened on Thursday after $15bn in credit-related writedowns plunged the US insurer into a record quarterly loss, and prompted it to raise $12.5bn to bolster its weakened balance sheet.

AIG’s poor first quarter results and capital raising plans will increase pressure on Martin Sullivan, chief executive, and dispel investor hopes that turbulence in the credit markets has subsided.

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