AIG has $600 mln Fannie, Freddie preferred: source

American International Group Inc, the world's largest insurer, holds between $550 mln and $600 mln in Fannie Mae and Freddie Mac preferred shares, according to a source familiar with the investment.
Investors have been biting their nails over companies' holdings of the agencies' preferred shares, with concern that the recent government takeover of the giant home-funding companies could wipe out value.
Insurers in total own about $4bln in Fannie Mae and Freddie Mac preferred stock, according to earlier figures compiled by rating agency A.M. Best.