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Wednesday, July 01, 2009
NYSE Admits AIG Delisting Goof-Up
Ray Hennessey
FOXBusiness
Oops.
The New York Stock Exchange said late Wednesday that it had mistakenly posted a notice that it planned to suspend and delist
shares of American International Group (AIG), the troubled insurance company that was the subject of a $180 billion government
bailout.
The NYSE said it posted the notice on its Web site, but that the information was incorrect. The Big Board said it removed
the information as soon as it noticed it was there.
AIG, based in New York, began its first day of trading Wednesday after a 1-for-20 reverse stock split that catapulted the
face value of its shares from just over a dollar to more than $23 a share. But the shares closed off 22%. It is unclear when
the erroneous delisting notice was posted and what role it had in AIG’s selloff.
The government stepped in with two separate government bailouts last year after AIG found itself on the wrong end of billions
of dollars of real-estate derivatives transactions. As a result, the government now owns roughly 80% in AIG, which has been
trying to sell assets to pay back its bailout loans.






