AIG shares bleed as clock ticks on capital plan
Posted on September 16, 2008 at 6:22 PM
As the clock ticks on a capital raising plan for American International Group Inc., the selloff continues as the insurance giant's shares slid 21.22% to close at $3.75 on Tuesday. AIG has lost 70% of its value since its Friday close. AIG's shares fell nearly 55% by just before 5 p.m. in after-hours trading as the market gears up for the Federal Reserve's answer about its funding plan expected Wednesday morning.
The banks that may be one key to AIG's capital plans, J.P Morgan Chase & Co. and Goldman, Sachs & Co., had mixed results with J.P. Morgan jumping 10.11% to close at $40.74 and Goldman slipping 1.84% to $133.01.
While uncertainty can kill you in the financial sector, certainty certainly pays. Merrill Lynch & Co., whose future is relatively secure thanks to buyer Bank of America Corp., jumped 30.01% Tuesday to close at $22.18 per share. Bank of America celebrated an 11.30% gain to close at $29.55.
Lehman Brothers Holdings Inc., which filed for Chapter 11 bankruptcy protection, had nowhere to go but up Tuesday as the stock climbed 42.86% to 30 cents per share following a report that Barclays plc has inked a deal to acquire some of its assets.
The Dow Jones Industrial Average recovered a portion of its historic 500-plus point Monday drop, picking up 141.51 points to close at 11,059.02. - Michael Rudnick
Posted on September 16, 2008 at 6:22 PM
As the clock ticks on a capital raising plan for American International Group Inc., the selloff continues as the insurance giant's shares slid 21.22% to close at $3.75 on Tuesday. AIG has lost 70% of its value since its Friday close. AIG's shares fell nearly 55% by just before 5 p.m. in after-hours trading as the market gears up for the Federal Reserve's answer about its funding plan expected Wednesday morning.
The banks that may be one key to AIG's capital plans, J.P Morgan Chase & Co. and Goldman, Sachs & Co., had mixed results with J.P. Morgan jumping 10.11% to close at $40.74 and Goldman slipping 1.84% to $133.01.
While uncertainty can kill you in the financial sector, certainty certainly pays. Merrill Lynch & Co., whose future is relatively secure thanks to buyer Bank of America Corp., jumped 30.01% Tuesday to close at $22.18 per share. Bank of America celebrated an 11.30% gain to close at $29.55.
Lehman Brothers Holdings Inc., which filed for Chapter 11 bankruptcy protection, had nowhere to go but up Tuesday as the stock climbed 42.86% to 30 cents per share following a report that Barclays plc has inked a deal to acquire some of its assets.
The Dow Jones Industrial Average recovered a portion of its historic 500-plus point Monday drop, picking up 141.51 points to close at 11,059.02. - Michael Rudnick
