Reutres: AIG hires law firm to draw up bankruptcy papers

Toast!

If they survive, it will only be after shareholder equity = $0 and only then in the form of some sort of governmentally administered program.

This is why you don't let insurance companies dress up and play stockbrokers.
 
Wow, already getting this bad. Could see ES 1150 if this comes true on Wednesday night.

Same law firm, huh? Going to be having some good income over the next few years with those two companies (LEH and AIG).
 
Quote from ByLoSellHi:

This is why you don't let insurance companies dress up and play stockbrokers.
More...

You don't get it.
That was not the issue with AIG.
 
Quote from Landis82:

You don't get it.
That was not the issue with AIG.
More...

its the CDS exposure thats the problem ..

aig wrote the protection on hundreds of billions of dollars of bonds ..
 
Another one bites the dust.

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Quote from sobemark:

its the CDS exposure thats the problem ..

aig wrote the protection on hundreds of billions of dollars of bonds ..
More...

Exactly.

And guess what happens to the Economy and the financial markets when the #1 bond insurer in the Nation goes down the tubes and there no longer is anyone to step-up and insure these kinds of securities?

AIG ended Q2 with $1.05 TRILLION in assets. Lehman only had $600 billion.

David Faber of CNBC now reporting that a "bridge" loan is being arranged.
This will save the credit default swaps.

But highly dilutive.
Shareholders are screwed.
 
Quote from Landis82:

Exactly.

And guess what happens to the Economy when the #1 bond insurer in the Nation goes down the tubes and there no longer is anyone to step-up and insure these securities?
More...

I guess nothing will happen
there are a lot of insurance companies
 
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