Reuters reports:
AIG will also give the Federal Reserve ownership interests in American Life Insurance (Alico), which generates more than half of its revenue from Japan, and Hong Kong-based life insurance group American International Assurance Co (AIA) in return for reducing its debt, the source said.The struggles of American fascism.
AIG may also securitize some U.S. life insurance policies and give them to the government to further reduce its debt, the source said.
The new deal would come as the insurer struggles to sell assets amid the financial crisis and prepares to post the largest quarterly loss in corporate history.
AIG, once the world's largest insurer, is expected to post a roughly $60 billion fourth-quarter loss on Monday, produced in large part by write-downs on certain tax assets and commercial mortgage backed securities, the source said.
The loss works out to about $460,000 per minute.
