American International Group, Inc. (AIG)
Sep
12
Written by:
9/12/2008 8:32 PM
American
International Group, Inc. (AIG)
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.