Monday, February 23, 2009

T' would be a shame if somethin' terrible were to occur...

By Alistair Barr, MarketWatch
Last update: 4:57 p.m. EST Feb. 23, 2009

SAN FRANCISCO (MarketWatch) -- American International Group Inc. said Monday that it's evaluating "potential new alternatives" with the Federal Reserve Bank of New York to tackle the giant insurer's problems.

"We continue to work with the Federal Reserve Bank of New York to evaluate potential new alternatives for addressing AIG's financial challenges," company spokesman Joseph Norton said. "We will provide a complete update when we report financial results in the near future."

Norton declined to comment further, while a spokesman at the New York Fed didn't immediately return a phone message seeking comment.

AIG's statement came after cable network CNBC reported that the company will report a $60 billion loss next Monday and is seeking more government support.

The loss may trigger more ratings downgrades, which would leave AIG needing to raise more collateral, according to CNBC's David Faber.

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