Implosions

AIG's $60 Billion Loss

News broke yesterday that AIG, having already received two taxpayer bailouts, is already back at the government well. So how bad are things at the insurance giant? According to Reuters, the company is bracing for a fourth-quarter loss of approximately $60 billion, which would be the single biggest loss in a quarter in corporate history. It would surpass Time Warner’s $54 billion loss in 2002 and more than double the $24.5 billion loss AIG posted in the third quarter, when the government bailed it out a second time. “The latest round of talks with the government include the possibility of additional funds for the insurer and trading debt for equity,” according to one source, and another says AIG may look to convert the government’s preferred shares to common stock.