FACTBOX: Recent developments in decline of AIG
NEW YORK (Reuters) - Embattled insurer American International Group Inc received New York state approval to post $20 billion of policyholders' assets as collateral as it seeks to stave off a liquidity crisis and works with banks to fix its problems.
Here are some details on the decline of a company that until recently was the world's largest insurer.
* Cost to insure AIG debt surged on Monday after reports it approached the Federal Reserve, seeking $40 billion in short-term financing.
* AIG's credit default swaps jumped to 30.5 percent the sum insured on an upfront basis, or $3.05 million to insure $10 million in debt for five years, from 13 percent last Friday.
* AIG received New York state approval to post $20 billion of assets.
* Last Friday, Standard & Poor's put the company's credit ratings on negative watch, indicating a possible downgrade.
* The company is due to update investors on a turnaround plan on September 25.
* AIG shares fell 60 percent on Monday.
* Collapse in the stock deepened speculation AIG could sell its profitable aircraft leasing arm, International Lease Finance Corp.
* Goldman Sachs told investors in August not to buy into AIG, citing increased likelihood of a capital raise and/or ratings downgrades.
* In August AIG reported a third consecutive quarterly loss of more than $5 billion after recording nearly $25 billion in unrealized market losses from credit default swaps.
* Chief Executive Officer Martin Sullivan stepped down after three years at the helm. Robert Willumstad replaced him and retained chairman title.
* Sullivan's departure came after several large shareholders pushed for his ouster after AIG posted record losses, stemming from write-downs in the market value of assets linked to subprime mortgages.
* Former chief executive Maurice "Hank" Greenberg was also critical of management and AIG's board.
* Sullivan replaced Greenberg in 2005, after then-New York state Attorney General Eliot Spitzer and the U.S. Securities and Exchange Commission accused Greenberg and the company of financial misconduct.
* Sullivan helped AIG reach settlement with regulators, paying $1.64 billion to settle charges of fraud, bid rigging and improper accounting.
* Sullivan initially won investor favor by seeing AIG through the regulatory probe, but saw his reputation become tarnished as losses mounted and AIG's stock fell.
* AIG was founded in 1919 by Cornelius Vander Starr.
* The company has operations in approximately 130 countries and holds assets of over $1 trillion. It employs 116,000 people worldwide.
