AIG ($0.49, $0.07, 16.64%) reached a new deal with the U.S. government for continued support for its restructuring as the insurance giant posted a record quarterly loss on $64.1 billion in write-downs and charges.

HSBC ($28.52, -$6.28, -18.05%), Europe's largest bank, said it would raise $17.7 billion by selling discounted stock to existing shareholders as it reported 2008 net income dropped 70% and cut its dividend. HSBC also is shutting down its branch network of its U.S.-based HSBC Finance arm, leaving only the selling of credit cards.

Other financial companies trading lower included Bank of America Corp. (BAC, $3.50, -$0.45, -11.43%), CIT Group Inc. (CIT, $2.17, -$0.28, -11.28%) and Wells Fargo & Co. (WFC, $10.69, -$1.41, -11.65%).

Industrial-equipment maker Woodward Governor Co. ($13.50, -$3.72, -21.60%) cut its fiscal-year guidance on lower orders amid the deepening recession and said it would buy HR Textron from Textron Inc. (TXT, $5.13, -$0.52, -9.20%) for about $365 million in cash.

Allied Capital Corp. (ALD, $0.81, -$0.26, -24.54%) swung to a fourth-quarter net loss on another increase of investment depreciation as the leveraged-buyout financier named John M. Scheurer chief executive as it separates the position from that of chairman. The company said it doesn't expect to declare any dividends this year.

All three major ratings firms lowered their credit ratings on MGM Mirage (MGM, $3.12, -$0.39, -11.00%) after the casino operator's request to borrow $842 million under its $4.5 billion credit pact Friday. Moody's Investors Services lowered its probability of default rating three notches further into junk and cut its corporate family rating two notches to B3. Moody's said its ratings remain on watch for further downgrades.

American Capital Inc. (ACAS, $1.20, -$0.15, -11.11%) reported its fourth-quarter net loss widened, in what the company called "an extraordinarily difficult time for our shareholders". And as a result of the fall in asset values, the asset management company is now in violation of its financial covenants for $2.3 billion in unsecured credit and said it had yet to reach any new agreements that would keep it from a fire sale.

Brinker International Inc. (EAT, $10.71, -$0.29, -2.64%) entered a smaller $215 million unsecured, three-year revolving credit line to replace an existing pact, which was set to expire in October. The company had about $90 million outstanding on the old credit line as of Dec. 24. The company chose to reduce the size of the credit line because it anticipates lower borrowing needs due to the divestiture of Romano's Macaroni Grill, slowing restaurant growth and its focus on paying back debt.

Chesapeake Energy Corp. (CHK, $14.96, -$0.68, -4.35%) announced that it has cut back its production capacity by 7% through curtailing output at its Haynesville Shale joint venture with Plains Exploration & Production Co. (PXP, $18.36, -$0.78, -4.08%) and that more cuts are being weighed. Meanwhile, the companies agreed to an amendment to their midyear deal that gives Plains the ability to put off an $800 million drilling payment.

Dish Network Corp.'s (DISH, $10.28, -$0.97, -8.62%) fourth-quarter net income rose 24% on increased revenue despite another drop in subscribers, while sister company EchoStar Corp.'s (SATS, $14.90, -$1.48, -9.04%) net loss widened on write-downs and acquisition charges. Dish Network completed the spinoff of EchoStar on Jan. 1.

Moody's Investors Service warned of potential downgrades of Dynegy Holdings Inc.'s (DYN, $1.25, -$0.05, -3.85%) credit ratings after the power generator cut its 2009 guidance on lower expected power prices tied to lower natural-gas costs and reduced demand.

Edison International's (EIX, $26.50, -$0.72, -2.65%) fourth-quarter net income rose 2.8% as gains in its Southern California Edison retail business were nearly offset by weakness in its power-generation operation. Edison International also said it will withhold its 2009 outlook until the California Public Utilities Commission rules on new rates for SoCal Ed.

Investment fund Leucadia National Corp. (LUK, $12.33, -$2.30, -15.72%) late Friday reported it swung to a loss in the fourth quarter on a 76% drop in revenue.