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Business  Business to Business Executive Director of AIG in Singapore resigns
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Executive Director of AIG in Singapore resigns |
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Saturday, 20 September 2008 |
Executive Director of AIA, Singaporean branch of AIG, resign today, reported Bloomberg. Mark O'Del who works for AIA of 14 years, left the company without explanation.
In an e-mail, distributed by the company, says that leaving the O'Del has nothing to do with the financial problems of AIG Inc. U.S. and particularly by the intervention of the Federal Reserve, which lent 85 billion dollars of AIG in an effort to gather capital, while its shares are thrown down by over 95 percent.
After intervention by the Federal Reserve in AIG, which in practice nationalize the company since took control of the 80% share of the insurer, many of the clients of AIA lost confidence in the insurer and began to withdraw funds from there.
AIA is wholly owned by AIG Inc.
Supervisory Commission in Singapore reported that life has sufficient resources to meet all its debts. This message, however, failed to recover lost customers of the company, commented Agency.
In striving to attract back some of its customers, AIA has offered to restore all policies without criminal charges, which were suspended after the Sept. 16.
In Singapore began liquidated insurance in AIG
Huge lines form in front of the office of the AIA in Singapore, a subsidiary of AIG (American International Group).
Serious problems with liquidity of AIG led the Federal Reserve to intervene and to grant an emergency loan of the largest insurer of 85 billion dollars against 80% share of the company. This practice was nationalization of the company whose shares are thrown down by over 95 percent in the last few days.
The decision of the U.S. government to save the problem instead of insurer AIG to rest people had a reverse effect - hours after the announcement by the U.S. Federal Reserve - lines began to form in front of the offices of the AIA in Singapore and people try to end its policy and withdraw investments its subsidiary of AIG.
Some people recognize that they do not understand the financial reasons for problems with the insurer, however, are willing to either liquidated policies and a big loss, given CNN.
Management of the company in Singapore tried to reassures our customers who waited hours in the big heat. In the statement the company said that AIA had enough liquid capital to meet the demands of all its customers. The funds in Singapore are completely separated from those in the U.S., says in the message.
However, people were willing to wait for 3 to 4 o'clock, they can withdraw their money.
AIA is a division of AIG in Singapore and offers its clients investment management, life insurance, medical insurance and other financial and insurance business products .
AIG also have a branch in Bulgaria - AIG Bulgaria ITA. Bulgarian branch but declined to comment on whether their customers have begun to liquidated their insurance with them and whether the financial problems of AIG have the potential to affect customers in Bulgaria.
Fed took control over AIG, put 85 billion dollars
The U.S. government took control of the largest insurer in American International Group (AIG) Inc., To avoid total collapse of the financial system.
Meanwhile the authorities will draw 85 billion dollars in strapped company in an attempt to increase liquidity and return confidence in AIG, reported Bloomberg.
The decision represents a total change of attitude of the government to the rescue of AIG, since in recent days had repeatedly argued that such is not allowed. But the company failed in finding an investor to provide sufficient funds for stabilization, which has caused interference Fed.
In the reasons for the decision states that "the failure of AIG would lead to disarray and increase the already high level of instability in the markets.
Instead, government aid amounted to 85 billion dollars, AIG will be divided with 79.9 percent of its capital. Former CEO of insurance company Robert Vilumshtad and other representatives of the management team will be exempted from office. For a new CEO to indicate the name of Edward Liddy, says a source familiar with the situation who asked to remain anonymous.
AIG financing is done through a two-year revolving credit, which will allow the company to sell part of its assets "fair price", says a notice announcing the deal. Among the assets of the company and the Bulgarian Telecommunications Company (BTC), which the group holds through its subsidiary AIG Capital Partners, Inc.
For its part, the government obtained the right to suspend payment of dividends on ordinary and privileged shares of AIG, which will cause serial impact on shareholders after a decline in the price of their shares by 94 percent since the beginning of the year.
"This is a huge relief. Nobody really knows what would have happened if it were allowed to go to AIG, but system risk in such a situation would be enormous. The problem is that no one knew how bad could happen", said the credit from UBS analyst David Hevans.
AIG problems came to light with the announcement of a loss of 18.5 billion dollars for the last three quarters, which questioned the survival of the institution. Because of the lack of sufficient capital rating agencies decreased valuation of AIG, and shares and qualify for clearance sale on the stock exchange in the U.S..
Assuming control of AIG is the third such operation of the U.S. government for the past few weeks. In previous such action the authorities went into the management of mortgage giants Fannie Mae and Freddie Mac. In mid-March did the Federal Reserve played a key role in the purchase of facing bankruptcy investment bank Bear Stearns by JPMorgan. |
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