Fed in Meetings Over AIG as the Insurer’s Stocks Tumble
The New York Federal Reserve is currently meeting to discuss the fate of troubled insurance giant, American International Group Inc (AIG).
Reports of a potential bridge loan, helped shares of AIG pare losses, but the company's shares remain lower Tuesday. Earlier the stock plunged more than 40 percent in the wake of a cut in the insurer's credit rating, which only served to heighten the concerns that it would file for bankrupcy and further upset the troubled global financial system.
AIG, one of the world's largest insurers, is the latest company to be convulsed by a mortgage and credit crisis that this week led to a bankruptcy filing by Lehman Brothers Holdings and the sale of Merrill Lynch to Bank of America.
The insurer has "a day" to solve its problems, New York Gov. David Paterson said on CNBC television.
Published on September 16, 2008
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