AIG cuts back staff at investment arm Evening Standard 16 December 2008, 11:25am Embattled insurer American International Group is axeing 6% of staff at investment arm AIG investments, with key jobs in London among them.
Ion Bogdaneris: is among key job losses at the embattled insurer
WANT TO KNOW MORE?AIG needs £7bn to fund mounting losses OTHER STORIESComet and Carpetright woes signal grim times Stock market report: Tuesday latest Yesterday's trading: FTSE's hopes fall on weak Wall St Sterling slumps further on rate cut hopes Xstrata cutback on coal as China cools FTSE LATEST4297.8020.24
LATEST ON...A round-up of the financial crisis Latest on... - Oil prices - Interest rates - FTSE 100 - Pound vs euro - Credit crunch - Libor
Ion Bogdaneris, head of its European alternative investments business, is leaving along with Raj Ranawat, a London-based managing director with the arm's direct investments group, and Devesh Bajoria, a senior analyst in the private-equity funds-of-funds group in New York. The group had 1950 employees before the lay-offs.
News of the job losses came as AIG unveiled the sale of assets with a face value of $39.3bn (£25.7bn) to a fund established by the Federal Reserve Bank of New York for $19.8bn.
AIG's new fund, Maiden Lane II, was created to hold mortgage liabilities from an AIG securities lending portfolio that caused huge losses to the company, sparking a $152bn rescue package from the US taxpayer.
The deal is part of a plan to clear the insurer of its obligations on mortgage debt.
Other stories: Weinberg lifeline for AIG collapse victims Bailout boost in £25bn AIG deal with Fed Aviva plays up strength and shuns AIG bid Aviva and Pru scrap over AIG The Pru out to prove itself with AIG move Rescued ING goes shopping for AIG Prudential tries to bankroll AIG assets bid Rescued AIG probed over 'outrageous expenditures' Bailed-out AIG: Staff told to tighten belts AIG in line for another cash boost AIG sells stake in City Airport |