Saturday, September 13, 2008

AIG Stuck on Mortgages

Amidst the news of WAMU, Lehman, and rumors of Merrill failing, the insurer AIG is seeking to raise $20,000,000,000 to cover it's own shortfalls. UK Times Via Nakedcapitalism.

The company has been taking major losses in large part because of its mortgage and security insurance businesses. The losses are likely to continue to grow.

Here's what's odd. Business News Americas this week reports that AIG is hoping to inure 140,000 Mexican mortgages by 2013. The Mexican housing market, while not in the same position as the U.S. is currently showing signs of weakening. One can only hope the company learns from past experiences, so far that doesn't look likely.

Of course it doesn't look likely the company will be around by 2013.

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