AIG subsidiary in Evansville cutting 500 jobs-WEB ONLY

Evansville-based American General Finance, a subsidiary of AIG, plans to cut 500 jobs and close 150 offices throughout the country, according to the Evansville Courier & Press.

AIG spokesman Mark Herr declined to say when or where the cuts and closings would occur but told the newspaper that the company will reassign some employees to its remaining 1,200 offices.

American General, like many lenders, has been hurt by tight lending markets. It has borrowed heavily to fund operations, but sources became scarce following AIG’s financial troubles.

The company reported a loss in 2008 of $1.3 billion, the newspaper said.

Once one of the world’s largest insurers, AIG suffered steep mortgage losses and received a federal bailout last year. It needs to pay back about $80 billion it borrowed from the U.S. Treasury and Federal Reserve.

AIG has been unloading assets to pay off the loans. The company has said it plans to sell American General, but a buyer has yet to be found.

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