March 2nd, 2009 — 1997, AIG, Bailout, Credit Crisis, Economy, Market Crash, Stock Losses, Stock Lows
Stocks crashed Monday, with the Dow and S&P 500 both falling levels not seen in 12-year after insurance company AIG’s huge quarterly loss added to mounting worries about the financial sector and the economy in general.
The Dow lost almost 300 points, or 4.2% to end at 6763.29, its lowest point since April 25th, 1997.
The S&P 500 lost 34 points, or 4.7%, ending at 700.82, its lowest close since Oct. 28th, 1996.
October 9th, 2008 — AIG, Credit Crisis, Credit Crunch, Economy, Government Bailout, Insurance Industry, Rescue
The Federal Reserve is planning to lend an additional $37 billion to American International Group (AIG) to give the failing insurer more access to much-needed cash.
In exchange for the loan, AIG is giving the government some fixed-income securities that it had previously charged other institutions a fee for. As a result of this, those institutions are now returning these securities and demanding their money back.
The new loan is on top of the $85 billion the federal government agreed to lend to AIG in September to prevent the company from collapsing. AIG said last week that it had already used $61 billion of that first loan.
October 8th, 2008 — AIG, Collapse, Economy, Failure, Insurance, Reference
Great article today on Mother Jones’ Mojo Blog about how insurance giant AIG collapsed last month.
As things unfolds, it is even clear now that AIG’s own employees had told the company that it had no way of knowing how much risk it had been exposed to.