Other financial news in brief
American International Group posts quarterly net loss of more than $5 billion
American International Group (AIG) posted its third consecutive quarterly net loss of more than $5 billion (€3.26 billion) as it wrote down bad mortgage-related investments, sending its shares down almost 8 per cent.
AIG said its second-quarter net loss was $5.36 billion, or a loss of $2.06 a share, compared with net income of $4.28 billion, or $1.64 a share, a year ago. It had an adjusted net loss of 51 cents a share.
The world's largest insurer and one of the hardest hit in the credit crisis also reported a general deterioration in its mainstream insurance businesses, which were hurt in particular by a decline in investment income and losses from its mortgage insurer, United Guaranty Corp.
"Our second-quarter results were adversely affected by the severe conditions in the housing and credit markets and a very difficult investment environment," AIG's chairman and chief executive, Robert Willumstad, said in a statement.
Mr Willumstad became chief executive of AIG in June after Martin Sullivan resigned. - (Reuters)
Citigroup buys back securities
Citigroup has agreed to buy back more than $7 billion (€4.57 billion) of illiquid auction-rate securities and pay a $100 million civil fine to settle charges that it marketed the debt fraudulently.
The settlement with New York attorney general Andrew Cuomo and the US Securities and Exchange Commission could pave the way for other settlements stemming from February's meltdown of the $330 billion auction-rate market, which boosted borrowing costs for US state and local governments, hurting taxpayers.
It will also hinder Citigroup chief executive Vikram Pandit's efforts to slash costs and restore the bank's profitability. - (Reuters)
Cryptologic declares dividend
Gaming software specialist Cryptologic, which recently relocated its headquarters to Dublin, yesterday declared a quarterly dividend of 12 US cents a share. The company will pay the dividend on September 15th to all those who hold shares in the company on September 8th.
The company will go ex-dividend on September 4th.
Prime Active Capital
An item on Prime Active Capital on Wednesday said the company wished to expand "by acquisition of" marketing communications firm Media Square, a business in which it has a minority stake. This should have read that Prime Active wishes to back good management teams in companies in Media Square's sector.
Barclays reports 33% drop in first-half profits after writedown
British bank Barclays reported a 33 per cent drop in first-half profits after taking a £2 billion (€2.54 billion) writedown on the value of risky assets, and said challenging market conditions are likely to last through 2009.
The bank said its pretax profit in the six months to the end of June was £2.75 billion, down from £4.1 billion a year earlier, but ahead of an average analyst forecast of £2.63 billion.
Half-year profits at Barclays Capital fell 68 per cent to £524 million, as it absorbed a £1.98 billion writedown on its credit market exposures. - (Reuters)
