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
  • Do’s and Don’ts of Advisory Contracts In preparation for a compliance exam, securities regulators typically will ask to see copies of an RIAs advisory agreements. An RIA must be able to produce requested contracts and the contracts must comply with applicable SEC or state rules.
  • Code of Ethics Rule The Code of Ethics Rule, found in Rule 204A-1, uses severe consequences for violation to help ensure investment advisors will do the right thing.  

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
This is where the comments go.