September 16, 2008 General 0

I wnated to post this earlier in the morning but i was too busy…soooo: – Market Rebounds Slightly After Biggest Drop in Years, AIG Still Teeters – Local News | News Articles | National News | US News
Investors worry its failure would pose an even greater threat to the U.S. financial system than the collapse of Lehman. AIG stock was down as much as 60 percent Tuesday.

Late Monday night, all three major credit rating agencies cut AIG’s ratings at least two notches. While the new ratings are all still considered investment grade, they add pressure on AIG as it seeks tens of billions of dollars to strengthen its balance sheet.

New York Gov. David Paterson said Monday he would support a measure allowing it to use $20 billion of assets held by its subsidiaries to pay for its business — essentially giving it a bridge loan from itself.

A collapse of AIG would force Wall Street to untangle the complex credit derivatives markets and send the market scrambling to figure out who owes what to whom — or even who owns what.