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NEW YORK - Embattled insurance giant American International Group said Tuesday it was pursing efforts "to increase short-term liquidity" but that its worldwide operations were not endangered.
In its first public statement since its shares went into a freefall on bankruptcy fears, AIG said its insurance, retirement and other financial services were operating normally.
AIG said its businesses "including its extensive Asian operations, continue to operate normally and remain adequately capitalized and fully capable of meeting their obligations to policyholders."
The statement added that AIG "continues to pursue alternatives to increase short-term liquidity in the parent company. Those plans do not include any effort to reduce the capital of any of its subsidiaries or to tap into Asian operations for liquidity."
The company said its insurance policies "are direct obligations of its regulated subsidiary insurance companies around the world" and that these companies "are well capitalized and meet or exceed local regulatory capital requirements."
AIG appeared near collapse Tuesday, prompting further panic on global markets and a flurry of reports about a last-minute rescue to avert a financial calamity.
Shares in AIG -- a company with one trillion dollars in assets and tentacles in many markets -- went on a roller-coaster ride, sliding 70 percent at the open, swinging into positive and then closing down 21 percent after a 60-percent plunge Monday.
News reports said AIG was in crisis talks at the New York Federal Reserve, seeking a short-term loan of as much as 75 billion dollars to avert a cash crunch and bankruptcy. - AFP/vm
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