AIG DEAD

I have been writing a lot of these "dead" headlines lately, haven't I?


http://financeinvestments.blogspot.com/2008/09/interesting-day-on-wall-street.html

http://www.ft.com/cms/s/0/271257f2-83f1-11dd-bf00-000077b07658.html?nclick_check=1

AIG Downgrades

AIG downgraded from AA to A. This of course increases the amount of capital they need to raise.

AIG in BIG trouble

May follow Lehman and Merrill into the dustbin of history before too much longer. Shares down 50% to $6 a piece. AIG needs to borrow $40B (their losses over the last three quarters) from the Fed window just to survive. I would be very concerned if the Fed opened their window to an insurer; that's unprecedented.

Cobb County Pension Plan

Citing a $115 million gap in its employee pension fund, Cobb County told workers late Thursday that it wants to alter its pension formula to increase employee contributions and reduce some benefits, among other changes. With about $349 million in assets and about $578 million in obligations, the plan is under-funded by about 40%, one of the worst ratios in the metro area. To meet acceptable standards, it must cut that rate to 20%.

[Thanks to MPC for the link]