AIG Bankruptcy Inevitable?
Shares of American International Group (AIG) plummeted to new record lows this morning after nervousness continued to mount that a Federal bailout for the Insurance broker might not take place. Just last Monday that the stock traded as high as $24.68.
AIG stock had its insurer’s credit ratings downgraded today and yesterday alone the stock had fallen 60.8%. Since tumbling down as low as $1.25 this morning the stock has rebounded after CNBC television stated a government bailout is still a strong possibility. US Treasury Secretary Henry Paulson though is currently opposing any such solution.
American International Group has come into focus after Merrill Lynch (MER) was announced to be bought out by Bank of America (BAC) and Lehman Brothers (LEH) filed bankruptcy.
This is starting to get pretty scary…
Thank you for your help!