AIG - something to ponder

[anigbrowl]

AIG is American Insurance Group, the largest insurer (and reinsurer) in the US. As you probably know, their stock is plummeting and getting downgraded as we speak. They've just worked out an arrangement with the Sate of New York which allows them to borrow $20 billion from their subsidiary.

Someone pointed out to me just now that this may sound good as a temporary workaround, but it's not going to look so good when the insurance claims for Hurricane Ike start to come in. My guess is prepare for another bailout.

[flamingdem]

1. I agree. Paulsen to the "rescue".

Or talk of a cut?

[upi402]

2. pretty soon US taxpayers will need a bail out

to eat food and live indoors.

get a tarp, i think things could get messy in the land of the fre and the home of the brave

[phantom power]

3. On that topic, what does it mean that a company worth a trillion dollars...

is negotiating a loan for $20 billion? Nothing good, is what I'm thinking.