Fed bails out AIG in dark month for US companies

Jonathan Rest looks back to October which saw record losses for US insurance firms, while regulatory bodies from Singapore and the Middle East enter a joint deal

Jonathan Rest

OCTOBER, like most months in the insurance industry in 2008, saw AIG take the headlines for all the wrong reasons. The group began disposing of some of its assets, starting with a deal to sell its 50% stake in London City Airport to other partners in the venture. Considerable speculation also mounted as to whether AIG would shed its 59% stake in US reinsurer Transatlantic Holdings.