Credit Suisse sees higher chance of AIG bankruptcy

September 16, 2008 by · Leave a Comment
Filed under: Industry News 

This looks to be the next shoe to drop in the market.   AIG being the largest insurer in the US could spell major trouble for counter-parties of their debt.  Estimates have placed a $400 billion dollar loss if AIG fails.  New York’s Patterson stated that AIG has not tapped their $20 billion fund to give them extra liquidity.  I have read speculations that AIG has 24-48 hours to figure out a deal or they will go under and leave much uncertainty in the markets.  To be continued…

Release:

American International Group Inc faces heightened probability of a potential bankruptcy filing by the holding company, a Credit Suisse analyst said Tuesday, a day after the insurer’s credit ratings were cut, jeopardizing efforts to raise cash necessary for its survival.

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