AIG Owes $10 Billion for Soured Trades, Wall Street Journal Reports

December 10, 2008

American International Group , once the world’s largest insurer, owes around $10 billion to other financial services firms for trades that have gone sour, the Wall Street Journal reported in its online edition Tuesday.

The report, citing people familiar with the matter, says the trades have not been explicitly disclosed before, and are not covered by terms of a current $150 billion U.S. government rescue package.

The government’s rescue package was meant to save AIG from collapse, but the Wall Street Journal report says the newly discovered trades raise further questions about how the insurer will raise money to pay the debts.

An AIG spokesman could not immediately be reached to comment on the report.

(Reporting by Paul Thomasch; Editing by Gary Hill)

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