NEW YORK — American International Group managed to lose $62 billion in just 92 days. That’s nearly $470,000 a minute.
And it’s more money than Bill Gates’ net worth.
The insurance giant’s quarterly loss reported Monday was the biggest in corporate history, topping the previous record of about $45 billion set by Time Warner Inc. during the fourth quarter of 2002.
That news came as the government said it would plunge another $30 billion in taxpayer money into the ailing New York-based company, which already has received $150 billion in U.S. aid since September.
But that hasn’t stopped the losses at AIG. The company, first wounded when the housing slump and credit crisis crushed the value of its investments in mortgage-backed securities, is now being hurt by the recession as well.
AIG’s quarterly loss totaled $61.7 billion for the October-to- December period, about 12 times the $5.3 billion it lost in the same quarter of 2007. That was more than half the $114.53 billion lost by nearly all other Standard & Poor’s 500 companies combined in the fourth quarter.
AIG’s lifelines
A chronology of the government’s support for insurance giant American International Group:
Sept. 16: The Federal Reserve provides AIG with up to $85 billion in an emergency two-year loan. In return, the government gets a 79.9 percent stake in the company and the right to remove senior management.
Oct. 8: The Fed provides AIG with an additional loan of up to $37.8 billion. Under that plan, the Federal Reserve Bank of New York would borrow up to $37.8 billion in investment-grade, fixed-income securities from AIG in return for cash collateral.
Nov. 10: The U.S. government restructures its loans, giving AIG a total of about $150 billion to help it remain in business. That package replaces earlier loans after it became apparent the insurer needed more funds.
Monday: AIG posts a $61.7 billion quarterly loss and receives a fresh $30 billion infusion from the government’s $700 billion financial-rescue fund that it can draw upon as needed. AIG’s credit line with the Fed is cut to roughly $25 billion from $60 billion.
The Associated Press
