What is the total impact of the Lehman Brothers holdings on Ameriprise?

Ameriprise holds $157 million in Lehman Brothers senior notes with an unrealized loss of approximately $102 million. Additionally, the company is prepared to purchase up to $100 million of Lehman Brothers commercial paper from its money market funds to protect their net asset value, which could represent further potential downside if not fully utilized or if the commercial paper value continues to decline.

How is Ameriprise managing its exposure to its own money market funds holding Lehman Brothers commercial paper?

Ameriprise, through its subsidiary RiverSource Investments LLC, is offering to purchase Lehman Brothers commercial paper from these money market funds at par value plus accrued interest. This is a proactive measure to maintain the $1 net asset value of these funds, shielding investors from immediate losses on these specific securities.

What is Ameriprise's exposure to AIG and Washington Mutual?

Ameriprise has approximately $118 million in AIG-related credit exposures, with $105 million in guaranteed investment contracts from AIG's SunAmerica Life Insurance subsidiary. It also holds $65 million in Washington Mutual Bank, FA subordinated notes, which have an approximate unrealized loss of $39 million, reflecting about 40% of par value.

Is Ameriprise facing any other significant financial risks disclosed in this report?

This specific 8-K filing focuses primarily on the disclosed credit exposures to Lehman Brothers, AIG, and Washington Mutual. While these are significant, the filing itself does not detail other potential risks but rather aims to inform investors about these specific concentrated exposures in light of recent market events.

AMP 8-K: Regulation FD — Sep 15, 2008

Summary

This Form 8-K filing by Ameriprise Financial, Inc. (AMP) on September 15, 2008, addresses the company's credit exposures in the wake of Lehman Brothers' Chapter 11 bankruptcy filing. Ameriprise disclosed its holdings in Lehman Brothers senior notes, amounting to $157 million with an approximate unrealized loss of $102 million. Additionally, the company detailed its efforts to support its money market funds managed by RiverSource Investments LLC by offering to purchase Lehman Brothers commercial paper at par value, up to $100 million, to maintain the funds' net asset value. Beyond Lehman Brothers, Ameriprise also revealed its exposure to American International Group (AIG), totaling approximately $118 million, including $105 million in guaranteed investment contracts from AIG's SunAmerica Life Insurance subsidiary. The company also has a $65 million investment in subordinated notes issued by Washington Mutual Bank, FA, which has an unrealized loss of approximately $39 million. These disclosures are crucial for investors to assess the immediate impact of these significant financial institution failures on Ameriprise's financial stability and asset values.

Key Highlights

1Ameriprise Financial has disclosed significant credit exposures following Lehman Brothers' bankruptcy filing.
2The company holds $157 million in Lehman Brothers senior notes, with an approximate unrealized loss of $102 million.
3Ameriprise is taking steps to support its money market funds by offering to purchase up to $100 million of Lehman Brothers commercial paper at par to maintain a $1 net asset value.
4The company has approximately $118 million in American International Group (AIG) related credit exposures, including $105 million in guaranteed investment contracts from SunAmerica Life Insurance.
5Ameriprise holds $65 million in Washington Mutual Bank, FA subordinated notes, with an approximate unrealized loss of $39 million.
6This filing primarily serves to update investors on potential financial impacts stemming from the distress of major financial institutions.

AMERIPRISE FINANCIAL INC 8-K Report, Regulation FD Disclosure (Sep 15, 2008)

Summary

Key Highlights

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