AIG race for cash as credit ratings slashed

As the crisis continues on Wall Street, American International Group (AIG) the global insurance giant efforts to raise new capital were put in risk after a series of damaging credit downgrades.

AIG, who has a $1,000 billion (£558 billion) balance sheet, as its credit rating gets slashed they face a $14.5 billion cash-call. We could see AIG following in the footsteps of Lehman Brothers and may have to file for bankruptcy protection in a bid to protect its assets if they do not raise the money.

On Monday as concerns grew about AIGs lack of capital its shares fell more than 60 percent, AIGs could have to write-off $60 billion and as the problems worsen their write-offs could increase according to two people close to the situation.

Source: nytimes