Tuesday, September 16, 2008

AIG Downgrades

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

Monday, September 15, 2008

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.