Global insurance giant American International Group (AIG) efforts to raise new capital were put in jeopardy after a series of damaging credit downgrades as the drama on Wall Street intensified, The Telegraph reports.
AIG, the world’s largest insurance company with a $1,000bn (£558bn) balance sheet, faces a $14.5bn cash-call as a result of the cuts.
The reductions are likely to make it even more difficult for the team of banks and regulators working frantically to provide a $75bn lifeline to Manchester United sponsor.
If that money cannot be raised, it is possible that AIG may have to file for bankruptcy protection in a bid to protect its assets, many of which continue to operate profitably.
A new law making it quicker for banks, credit card companies and other lenders to take action against struggling debtors could lead to thousands more people losing their homes, say debt advisers.
The Guardian reveals the rules will make it easier for lenders to use charging orders to convert unsecured borrowing, such as car loans or credit card debts, into loans 'secured' against the home of someone who owes them money. Once a charging order has been used to convert an unsecured loan into a secured loan, the lender can then force the homeowner to sell their home to pay back the debt.
At the moment, creditors can apply for a charging order only where a debtor has incurred a county court judgment and has fallen behind with the repayment instalments agreed when the judgment was made. But under the new rules, lenders will be able to apply for a charging order simply because a county court judgment has been issued, irrespective of whether or not a debtor is sticking to an agreed repayment schedule. If the debtor then falls into arrears with repayments, the creditor can immediately use the charging order to ask the court to force a sale of the debtor's home.
Unemployment in Britain will surge by 450,000 to 2.12 million by the end of next year, a level not seen since 1997, when Labour came to power, as the country endures its first recession since the early 1990s, the CBI forecasts today, reports The Times.
In a dramatically revised outlook for the economy, the employers' organisation says that Britain is already in a recession and will not recover until the middle of next year. It adds that homeowners will continue to suffer brutal falls in the value of their property.IFAonline
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