Shares of Molycorp Inc(NYSE:MCP) continued to tumble in Monday’s session and slid 5% after falling 14% in Friday’s session as the company revealed that it is under investigation by the Securities and Exchange Commission over the accuracy of its disclosures, among other things.
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As per the filing the company received the notification of SEC investigation in August but no further details were given. Molycorp is fully co-operating with SEC and said that it cannot predict the length or scope of investigation, further it is not clear if there will be any impact on operations.
The company posted a third-quarter loss after the market closed on Thursday, but came in above analyst expectations.
Chief Executive Officer Bob Benmosche said American International Group, Inc.(NYSE:AIG) plans to sell off its savings and loan business soon it receives label of “too big to fail” from a federal panel.
Over a telephonic interview the CEO said that the company is looking more aggressively at making and purchasing mortgages as investment vehicles.
Four years ago the company received a $182.5 billion in bailout money from U.S. taxpayers at the height of the financial crisis. Since then it has been working to repay the government and regain its creditability.
Regulated by the Federal Reserve American International Group has savings and loan business without which it is likely to come under permanent Fed oversight anyway as a "systemically important financial institution," or SIFI.
Benmosche said of the S&L, "we are planning to close it down. It's a business that doesn't make sense to be in."
Benmosche said that it has spoken to banks as potential buyers and hired lawyers.
Even as it looks to sell off the bank, though, one place AIG is bulking up is in mortgages.
Shares are down nearly 10 percent since, with most of that drop coming after the company said it would ease up on buybacks in favor of using its capital to manage its debt load.
"The main thing is we feel we should try to get to a 51 percent sale such that we can deconsolidate the debt from AIG, so that's a target that we have, but we will have to see how it goes," he said. "We are looking for a major launch that gets us more than halfway there."