China in auto power play
It might not shake up the industry just yet, but China's interest in Volvo and Saab is the start of something big in global autos, writes columnist Wei Gu. Commentary
FACTBOX: Key stumbles in recent AIG history
American International Group staved off collapse on Tuesday after the U.S. Federal Reserve Bank of New York agreed to lend up to $85 billion to the cash-strapped insurer over two years in exchange for a 79.9 percent equity stake.
Below are some key dark days in the 89-year-old company's recent history.
2005
February - Former New York Attorney General Eliot Spitzer and the U.S. Securities and Exchange Commissioner send American International Group subpoenas about "non-traditional insurance products and certain assumed reinsurance transactions.";
March - Hank Greenberg, who had led AIG since 1967, is forced out as CEO and replaced by longtime lieutenant Martin Sullivan;
May - Spitzer files a civil suit against AIG, saying the company, Greenberg and former chief financial officer Howard Smith, used "deception and fraud" to inflate the stock's price;
2006
February - AIG settles with SEC and state securities and insurance regulators, agreeing to pay $1.6 billion to resolve claims of improper accounting, and bid rigging;
2007
August - As the U.S. subprime mortgage crisis worsens, the company tells investors it is "very comfortable" with its exposure;
November - After third-quarter earnings fall 27 percent, the company concedes the subprime mortgage crisis is affecting results;
June - SEC begins probing how AIG valued its credit default swaps, which have emerged as a key weakness in its balance sheet;
2008
June - AIG replaces Sullivan with former Citigroup CEO Robert Willumstad after the company posts the second of two consecutive quarters of record losses. Total losses from the subprime crisis reach $18 billion, and total write-downs $25 billion;
Sept 13-14 - AIG officials reportedly meet top New York state officials at weekend seeking permission to liquidate some assets to raise cash, and approach the U.S. Federal Reserve seeking $40 billion in short-term financing to avoid rating downgrades;
Sept 15 - New York State gives AIG permission to access $20 billion of capital in its subsidiaries to free up liquidity to avoid a collapse by AIG, on the same day Lehman Brothers files for bankruptcy; AIG shares fall some 60 percent;
Sept 16, 2008- The Federal Reserve Bank of New York agrees to lend AIG up to $85 billion, repayable within two years, in exchange for a 79.9 percent stake, and former Allstate Corp CEO Edward Liddy becomes CEO.
(Compiled by Phil Wahba; Editing by Kim Coghill)
