American International Group. AIG Fights For Survival. (part 1)
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Sep. 15, 2008.
Nation's largest insurer hit by credit raters as it tries to raise cash. Fed asks Goldman and JPMorgan Chase to raise $70 billion for firm. Shares end down 61%.
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The pressure on American International Group reached fevered pitch on Monday night as the troubled insurer was hit by a series of credit rating downgrades.
The cuts could prove deadly to AIG, the nation's largest insurance company, which is scrambling to raise much-needed capital.
Late Monday night, Moody's Investors Service and Standard & Poor's Ratings Services each said they had lowered their ratings.
A few hours earlier, Fitch Rating had also downgraded AIG, saying the company's ability to raise cash is "extremely limited" because of its plummeting stock price, widening yields on its debt, and difficult capital market conditions.
The downgrades will make it more expensive for AIG to issue debt and harder for it to regain the confidence of investors.
Fitch said AIG could be required to post $10.5 billion of additional collateral if it was downgraded one notch by one of the other major rating agencies and $13.3 billion of collateral if downgraded by both, Fitch said in a statement, citing AIG's July 31 estimates.
The grim assessments came after a day in which state and federal officials raced to help the insurer gain access to much needed cash.
The company has lost more than $18 billion in the past nine months.
The credit downgrades could doom its business.
Source:
http://money.cnn.com/2008/09/15/news/companies/AIG/index.htm
Tags for this video: (part 1) 15 2008. AIG American and Asia Brother China Collapse crash CRISIS Economy. Fannie fed Fights For Freddie Group. International Japan Mac Mae market NOT of OVER. Reaction. sep. stock Survival. the Western
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socialize the loss, privatize the profit.
God Bless America.