Keeping an Eye On AIG
One of the toughest weeks on Wall Street continues as American International Group (AIG) is unfortunately inching closer towards bankruptcy. After AIG’s request for a loan Sunday was denied by the Federal Reserve, and hopes of a rescue from the private sector has almost completely faded, one of the world’s largest insurers may not even make it through the day. A question that has been proposed ad naseum in recent weeks begs to be asked again — “Is this company too big to fail?”
AIG probably has one day to raise $75 billion to $80 billion, New York Governor David Paterson said today on cable- television channel CNBC. A collapse would be felt beyond the insurance industry, he said.
