I wonder if this would set a chain reaction affecting finance related organizations in the US. If AIG really goes bankrupt, it would be the largest corporate bankruptcy in terms of assets. AIG has US$1 trillion worth of assets.
AIG struggles to survive financial tsunami
Insurer American International Group Inc struggled for survival a day after a financial tsunami swept away investment bank Lehman Brothers and forced the sale of rival Merrill Lynch in the biggest financial industry shake-up since the Great Depression.
The U.S. Federal Reserve has hired investment bank Morgan Stanley to review options for AIG — which has lost some 92 percent of its value so far this year — a person familiar with the situation said Monday.
Darkening one of the few bright spots from the weekend’s mayhem, Bank of America — which would surpass Citigroup Inc as the country’s largest bank by assets with the planned takeover of Merrill — saw its shares plunge. (Source: Reuters)
I have AIA policies. Regarding insurance policies, there likely be a takeover and the policy remains the same. If bankruptcy occurs for AIG, branches such as AIA (American International Assurance) probably be affected by value, but it doesn’t mean AIA would go bankrupt too.
I’ve been following the US finance thing a little, things don’t seem optimistic.