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AIG and its troubles

By admin | May 12, 2008

AIG's (AIG) recent financial foibles have executives at its airplane leasing unit, International Lease Finance Corp., so worried they're considering splitting off from the parent. Sources say ILFC officials were surprised by the magnitude of AIG's $7.8B Q1 loss last Thursday, which saw ILFC's credit rating downgraded together with AIG's. ILFC's earnings have been exceptional despite the massive losses at AIG. Possibilities include a spinoff or sale, or that the two sides agree to continue to work together. Bear in mind that ILFC CEO Steven Udvar-Hazy is a major AIG shareholder, so he's unlikely to shoot himself in the foot. On Friday, former CEO Hank Greenberg filed a lawsuit that alleges AIG management concealed $4B in losses in its credit default swap portfolio.

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Topics: Daily Updates |

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