Goldman, JPMorgan Try to Arrange $75 Billion Financing for AIG
By Hugh Son
Sept. 15 (Bloomberg) -- Goldman Sachs Group Inc. and JPMorgan Chase & Co. are trying to arrange financing for American International Group Inc., the biggest U.S. insurer by assets, to plug a $70 billion to $75 billion financing gap, according to people familiar with the situation.
The Federal Reserve urged AIG to seek private capital and discouraged the insurer from expecting a loan from the central bank, according to two people with knowledge of the discussions.
New York-based Goldman and JPMorgan are working with AIG to determine how much the insurer needs, said one of the people, all of whom declined to be identified because negotiations are private. The loan would involve temporary financing, a so-called bridge loan, through a syndicate of banks, the person said, adding that there's no assurance an agreement can be worked out.
``We're still working on a number of alternatives,'' said Nicholas Ashooh, spokesman for New York-based AIG. JPMorgan's Brian Marchiony and Goldman's Lucas van Praag declined to comment.
To contact the reporter on this story: Hugh Son in New York at email@example.com