American International Group, Inc. (AIG)

[artmaniac]

here is why AIG tanked today in my personal humble opinion:
AIG’s (AIG) new CEO, who probably wishes he had never seen the job, mentioned that the $123 billion the government has put up to help his insurance company will not be enough even if the firm cuts back on all of its fun outings. AIG has already gone through $90 billion in record time. Its chief executive believes it will need more collateral while it tries to sell some of its healthy divisions to raise cash. The credit markets are so tight that making those sales may be especially hard. The federal government’s argument for putting capital into AIG was that it was “too big to fail.” It is hard to see how that logic has changed in a month. The AIG problem could become at $200 billion fairly fast.

http://www.forbes.com/2008/08/25/aig-insurer-update-markets-equity-cx_ra_0825markets30.html