American International Group, Inc. (AIG)
Source: http://fastswings.com/FastSwingscom/tabid/518/EntryID/991/Default.aspxPosted on Friday, September 12th, 2008 | In Market Commentary
Shares of American International Group (NYSE:AIG) fell roughly 31% today as investors continue to worry about other financial institutions that might file for bankruptcy protection due to a lack of credit available in the market. Companies investors are worried most about include Lehman Brothers (NYSE:LEH), down 13.5%, which is shopping for a buyer this weekend, Washington Mutual (NYSE:WM), down 3.5%, which has similar credit issues due to mortgages that it currently holds as Lehman and AIG, and Merrill Lynch (NYSE:MER), down 12.25%, for the same stated earlier reasons.
By Steve Patterson
AIG Looking Hard for Capital
AIG has been hunting for a liquidity infusion to support its current outstanding debt while the stock is being driven lower everyday that there is not a plan in place. One fear of the company is a downgrade of its debt which would make survival even more difficult. The company has guaranteed billions in home loan instruments that are no longer of decent value and the losses on these insured assets could sink the organization.
Standard & Poor’s CreditWatch
The rating agency Standard & Poor’s (S&P) placed AIG on CreditWatch after the close of the trading day on Friday. This could lead to the debt downgrade that the company has feared. After discussions with the management of the company S&P will make its judgment.
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Last 5 posts by Steve Patterson
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 About Steve Patterson (http://www.fastswings.com/)
Steve Patterson is a trained software engineer with an engineering degree in computer science and a MBA from Capital University in Columbus, Ohio. He has been an active trader of stocks and options for the past 10 years with a focus and technology and large cap stocks. In addition, he is the editor and one of a number of writers on several web based publications that he owns and operates. |
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