Monday, September 15, 2008

AIG Seeks Huge Loan As Stock Dives 61% (S&P Cuts by Three Notches)

From the Wall Street Journal:

American International Group Inc., its shares in free-fall, struggled Monday to pull off a tangled deal that involved placating state and federal regulators, convincing banks to give it a huge loan and staving off the credit-rating agencies that hold the giant insurer's fate in their hands.

Late Monday, Standard & Poor's cut AIG's credit rating by three notches but it was unclear what direct effect the move would have on the company's abilities to meet its obligations. Moody's Investors Service also downgraded AIG's debt Monday night....MORE