Next casualty? Investors eye AIG | WHAT REALLY HAPPENED


Next casualty? Investors eye AIG

With Lehman Brothers running out of options in the past week, investors fear that AIG will face billions in additional losses because it has effectively guaranteed complex financial instruments tied to home loans whose values have plummeted. If so, it too could need to raise capital, which Freddie Mac, Fannie Mae and Lehman have demonstrated can be a vexing problem in the current market environment.

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