Reuters
Futures fall on report conservatorship eyed for AIG
Tuesday September 16, 5:06 pm ET
NEW YORK (Reuters) - U.S. stock index futures fell after the market closed on Tuesday on a Bloomberg report that the United States was considering conservatorship as an option for troubled insurer American International Group.
The report, citing two people briefed on the talks, caused a 48 percent drop in AIG shares after the bell...
Treasury Said to Be Considering AIG Conservatorship
By Craig Torres and Elizabeth Hester
Sept. 16 (Bloomberg) -- The U.S. Treasury is considering taking over American International Group Inc. under a conservatorship as one option to address the insurer's crisis, according to two people briefed on the discussions.
Executives from AIG, bankers and Treasury and Federal Reserve officials are meeting today on the company's situation at the New York Fed. A number of options are under being discussed to fill a shortfall of $75 billion to $100 billion in funding one of the people said. The talks are continuing, he said.
Goldman Sachs Group Inc. and JPMorgan Chase & Co., which have been leading efforts to find a private-sector solution, informed the Fed that such an effort would be difficult, the person said. Under another option, the Fed would extend a loan to New York-based AIG, according to a person informed of the matter.
Treasury Secretary Henry Paulson earlier this month seized Fannie Mae and Freddie Mac and put them into conservatorships, where officials will oversee the firms and aim to protect their assets...
