Big losses at insurance giant AIG and Freddie Mac dim hopes of early end to credit crisis; US housing market only halfway through downward cycle; House prices to fall a further 20%
Aug 7th, 2008 | By Finfacts Ireland Business & Finance Portal | Category: News worldwide
US insurance giant AIG - American International Group - on Wednesday, reported its third consecutive multibillion-dollar quarterly loss, a $5.4 billion hit that highlights the risks posed by the housing sector for the insurer. Together with the report of the fourth straight quarterly loss by the government sponsored mortgage financier Freddie Mac and a forecast of continuing housing market woes, the prospects of an early end to the credit crisis have dimmed. Freddie Mac expects house prices to fall nationally by up to a further 20%.