AIG Has Borrowed $90.3 Billion

Liddy says insurer may need more than $122 billion to survive

More On Legal & Compliance

from The Advisor's Professional Library
  • Proxy Voting RIAs are not required to vote proxies on behalf of their clients. However, when an RIA does assume responsibility for voting proxies, the firm’s policies and procedures should help to ensure that votes are cast in the best interest of clients.
  • Books and Records Rule Thorough and complete books and records enable RIAs to demonstrate that they have fulfilled their fiduciary obligations to clients and complied with applicable rules and regulations.

AIG, the giant insurer that was nationalized by the government because of its exposure to subprime mortgages, said that it has used $90.3 billion of the credit line it received from the Federal Reserve Bank in September. On October 22, AIG's government-appointed CEO, Edward Liddy, said AIG may need more than $122.8 billion to continue operations.

There were published reports that two additional U.S.-based insurers--MetLife, which reports earnings October 29, and Prudential--might seek government funds from the Treasury Department's $700 billion purse to shore up their operations.

In The Netherlands, the big insurer Aegon--parent company of TransAmerica--said it might take advantage of the Dutch government's capital injection program that ING has already tapped into.

Reprints Discuss this story

Most Recent Videos

Video Library ››