Shares hit lowest ever as company hints it needs more cash
Investors concerns that AIG could need more cash than the $150bn taxpayer bailout it received last year sent its shares to an all-time low yesterday, Reuters reported.
"People are getting nervous with companies that received money from the government ... concerned about whether money will be available for these troubled companies," said William Lefkowitz, an options strategist at brokerage firm vFinance Investments in New York. "As a result of this thinking, AIG is trading down today."
AIG's Chief Executive Edward Liddy has said he hoped the government's $150 billion rescue package would be adequate, but he did not rule out seeking more government money.
Shares of AIG, which traded at $55.96 a year ago, fell as low as $1.01 on the New York Stock Exchange on Tuesday. They were down 15.45 percent at $1.04 in afternoon trade.
