Update: AIG stock price in turmoil

One of the worlds largest insurers American International Group Inc (AIG) had a very volatile Tuesday as its share prices swung wildly due to speculation of government assistant in a possible bailout of the insurer, and chances of finding a private-sector solution wore thin.

The AIG stock lost nearly three quarters of its value in the opening minutes of trading Tuesday, news of the possibility of AIG having to file for bankruptcy if it didn’t secure around $75 billion in stop-gap financing by Wednesday set investors into a frenzy of decision making.

A report by CNBC regarding a possible federal involvement turned the table on the AIG stock price within 90 minutes; the stock price recovered most of the earlier decline and was down just 4%.

Unfortunately AIG shares couldn’t sustain the momentum. AIG shares, fell 61 percent on Monday and fell as low as $1.25 on Tuesday. This just outlines the dilemma that AIG’s shares volatile behavior poses more problems for Wall Street as AIG stock price.

Read full article in money.cnn