Current+Maddy

http://www.madison.com/wsj/home/biz//index.php?ntid=305408

The Dow Jones industrial average lost 450 points, getting shortfall of 800 this week. Federal reserve gave a two month loan of $85 billion dollars, in return for an 80% stake in the company, which lost billions.There was a risky business of insuring against bond defaults. Wall Street feared that Conglomarate with industries all over the world would follow into bankruptcy. Having lied to investers saying we are fine, they are now found to be distrustful of any insurance. For bankruptcy protection they sold North American investment banking and trading opperations of Barclays Britians 3rd largest bank, in return for a bargain of $250 million.

Questions

1. How much longer will AIG be able to stay in business?

2. Will AIG ever be able to get out of this hole?

3. How much money do they have at this moment?

http://web.aig.com/2008/cig8230/cig8230_b.html

Joel Ario, Pennsylvania's insurance commissioner said that AIG group insurance companies are sound and all safe in Pennsylvania. AIG signed a definitive agreement with federal Preserve bank to allow them to move forward in finalizing their strategic initiatives. This shows the Government AIG's important role in financial marketing.

Questions

1. Is this effecting any other banks? 2. Are only the banks of AIG in Pennsylvania safe? 3. How well are they doing in finantials right now?

http://web.aig.com/2008/cig8230/cig8230_b.html

9/16/08 Federal Reserved Board with support of treasury asked for NY federal reserved bank to lend $85 billion. AIG can take from this loan whenever they need over the next 24 months.

Questions

1. How badly did AIG need this loan?

2. Can they get through in less then 24 months?

3. How successful will AIG be?