Saturday, September 13, 2008

AIG Holds Nearly $600 Million in Fannie Mae and Freddie Mac Preferred Shares

American International Group Inc, the world's largest insurer, holds between $550 million and $600 million in Fannie Mae and Freddie Mac preferred shares, according to a source familiar with the investment.

Investors have been biting their nails over companies' holdings of the agencies' preferred shares, with concern that the recent government takeover of the giant home-funding companies could wipe out value.

Insurers in total own about $4 billion in Fannie Mae and Freddie Mac preferred stock, according to earlier figures compiled by rating agency A.M. Best.

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