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CORRECT: AIG Was Most Frequent User Of Commercial Paper Program -Fed

("AIG Was Most Frequent User Of Commercial Paper Program -Fed," published at 4:55 p.m. Wednesday, listed BNP Paribas as the second-most frequent user of the Fed's Commercial Paper Funding Facility. According to revised data from the Federal Reserve, the facility was tapped by Fortis, which BNP Paribas acquired in May 2009. A corrected version follows.) By Erik Holm Of DOW JONES NEWSWIRES NEW YORK -(Dow Jones)- American International Group Inc. (AIG) turned to a government program for short-term funding 90 times over 15 months, marking the bailed-out insurer as the most frequent user of the program, according to data released by the Federal Reserve. AIG borrowed $60.2 billion from the U.S. Federal Reserve's Commercial Paper Funding Facility beginning in late October 2008, when the program was created to help companies that had trouble obtaining short-term loans in the private market. AIG's frequent use of the facility underlines its status as one of the biggest recipients of government bailout money in the financial crisis. The U.S. had pledged more than $140 billion toward helping AIG through various programs, including the Trouble Asset Relief Program. AIG laid out a plan earlier this year for paying back its government bailout. The insurer's heaviest use of the facility was in the program's first three months of operation. AIG borrowed almost $15 billion before its first loans matured on Jan. 27, 2009. Some later loans appeared to be to cover the maturing paper. All the loans have since been paid back, and the Fed stopped the program on Feb. 1 of this year. The Fed released information on the companies that tapped the facility on Wednesday. The CPFF was created amid the depth of the financial crisis, when investors were so skeptical of companies and the collateral they offered that they were reluctant to give even one-week or one-day loans. Many companies have long relied on such short-term borrowing, called commercial paper, to fund day-to-day activities such as meeting payroll, paying rent or stocking inventory. Without the short-term loans, some businesses found it increasingly difficult to operate, so the Fed's CPFF was created to fill the void -- albeit at higher rates of interest -- until investor confidence returned. The most frequent users after AIG were Dutch financial group Fortis, which used the facility 74 times, and Royal Bank of Scotland Group PLC (RBS, RBS.LN), which tapped it 67 times. Fortis was acquired by BNP Paribas SA (BNPQY, BNP.FR) in May, 2009. The Fortis units that tapped the CPFF did so five times after the deal was completed, compared with 69 before. Other U.S. insurers who used the facility include Prudential Financial Inc. (PRU), MetLife Inc. (MET), Hartford Financial Services Group Inc. (HIG), Lincoln National Corp. (LNC) and Genworth Financial Inc. (GNW). Prudential borrowed a total of $2.46 billion over six occasions, with the last loan maturing in April 2009 . MetLife accessed the CPFF 10 times for $1.64 billion, and repaid its last loan in March 2009. Hartford used the program nine times over its first three months, borrowing a total of $724.5 million. Lincoln borrowed $472.1 million from the CPFF across six occasions ending in Feb. 2009. Genworth accessed CPFF three times--all within the first two weeks of the program--and borrowed $202.4 million. All repaid the funds in 2009. Most companies have since found more attractive rates by selling longer-term corporate bonds. But AIG was among the last to get help from private investors in the bond market. Its first successful foray into the market was Tuesday, when it sold $2 billion in new debt. AIG hadn't re-entered the capital markets before because of the massive bailout it got from the U.S. The end of the CPFF in February forced AIG to drawn down its secured credit facility from the Fed. AIG announced a roadmap to repaying the rescue in late September. -By Erik Holm, Dow Jones Newswires; 212-416-2892; erik.holm@dowjones.com

Stock News for Genworth (GNW)
DateTimeHeadline
08/26/201517:01:53Statement of Changes in Beneficial Ownership (4)
08/26/201517:00:34Statement of Changes in Beneficial Ownership (4)
08/24/201517:50:49Statement of Changes in Beneficial Ownership (4)
08/21/201516:17:19Statement of Changes in Beneficial Ownership (4)
08/19/201516:19:20Statement of Changes in Beneficial Ownership (4)
08/14/201521:01:00GENWORTH ALERT: Shareholder Rights Law Firm Johnson & Weaver...
08/10/201509:32:29Statement of Changes in Beneficial Ownership (4)
08/10/201509:31:32Statement of Changes in Beneficial Ownership (4)
08/05/201516:45:00A.M. Best Removes from Under Review & Affirms Ratings of Genworth...
08/05/201510:00:19U.S. Hot Stocks: Hot Stocks to Watch
08/04/201517:16:13Current Report Filing (8-k)
08/04/201517:10:00Genworth Financial Announces Second Quarter 2015 Results
07/28/201509:40:00Life Insurance Stocks Highlight -- Genworth Financial, MetLife...
07/22/201508:22:53Current Report Filing (8-k)
07/22/201504:08:10Genworth to Sell Lifestyle Insurance Business to France's AXA
07/22/201502:45:00Genworth Enters Into Exclusive Negotiations With AXA S.A. To...
07/13/201516:10:00Genworth Financial Schedules Earnings Conference Call For August...
07/02/201516:24:00CANCELED: July 3 Genworth "Celebrate Freedom" Concert and Fireworks
07/01/201516:22:36Statement of Changes in Beneficial Ownership (4)
07/01/201516:21:43Statement of Changes in Beneficial Ownership (4)

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