AIG Bankruptcy

We are truly getting into scary stuff.

According to NYT, AIG is hiring a law firm to draw up bankruptcy papers. 

It is not known whether the Fed would now change course and agree to provide an emergency infusion of capital to the cash-starved insurance giant, or what form such aid would take. If the Fed decides not to intervene, A.I.G. will probably file for bankruptcy by Wednesday, these people said.

.....

A.I.G.’s collapse seemed so likely on Tuesday that the company hired the law firm Weil, Gotshal & Manges — which is also handling the Lehman Brothers bankruptcy — to draw up bankruptcy papers.
Many of A.I.G.’s subsidiaries have drawn down on their credit lines, people briefed on the matter said.

In another report, the fed says it does not have the legal authority for an AIG conservatorship.  So it's going to be an interesting day tomorrow.

---

The content contained in this blog represents the opinions of HousingDepression.
This commentary in no way constitutes investment advice. It should never be relied on in making an investment decision, ever. Nor are these comments meant to be a solicitation of business in any way - such inquiries will not be responded to. This content is intended solely for the entertainment of the reader, and the author.  We may hold either long or short positions in securities of various companies discussed in the blog.  The information in blog may contain misspellings and other inaccuracies.  It is provided "As IS," without express or implied warranties of any kind.  HD represents all rights to the information.