Free Trial!
Today’s Best Stocks To Trade! Click Here
Wilmington Finance Inc. will honor the existing loan commitments in its mortgage-banking pipeline, said an AIG (NYSE: AIG | Quote | Chart | News | PowerRating) spokesman.
?This is not a sudden decision,? said spokesman Joe Norton. ?It was based on the extraordinary developments in the mortgage industry in the past year and the belief that the current climate is unlikely to improve significantly in the foreseeable future.?
Approximately 335 WFI positions will be eliminated by the end 2008, and WFI will provide outplacement assistance to affected employees, he said.
WFI originated nonconforming residential real estate loans directly and through mortgage brokers, selling the loans to third party investors, Norton said.
?There is some subprime overlap,? he said.
WFI?s largest office is in Plymouth Meeting, Pa., and it also operates offices in Charlotte, N.C., Henderson, Nev., and Livermore, Calif., Norton said. It is part of AIG subsidiary American General Finance Inc., a consumer finance and credit insurance business based Evansville, Ind.
The announcement came two days after AIG?s board replaced Chief Executive Officer Martin Sullivan with its chairman, Robert Willumstad. Sullivan had come under increasing criticism from major shareholders after AIG posted two consecutive quarterly losses linked to AIG?s exposure to subprime mortgages and the U.S. housing market (BestWire, June 16, 2008).
AIG currently has a Best's Financial Strength Rating of A+ (Superior).
Shares of American International Group were selling at $32.72 in late trading on June 17, down 3.82% from the previous close.
(By Alyn Ackermann, senior associate editor, BestWeek: Alyn.Ackermann@ambest.com)
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
