Sunday, September 14, 2008

We're All Communists Now


The American International Group is seeking a $40 billion bridge loan from the Federal Reserve, as it faces a potential downgrade from credit ratings agencies that could spell its doom, a person briefed on the matter said Sunday night.

Ratings agencies threatened to downgrade the insurance giant’s credit rating by Monday morning, allowing counterparties to withdraw capital from their contracts with the company. One person close to the firm said that if such an event occurred, A.I.G. may survive for only 48 hours to 72 hours.

Wikipedia tells me AIG is the 18th largest company in the world. More than that, a chunk of its business involved guaranteeing Big Shitpile. Another chunk of its business involved betting on Big Shitpile.