AIG Warned of 'Crisis' if Government Didn't Help

[babylonsister]

AIG Warned of 'Crisis' if Government Didn't Help
Draft, Obtained by ABC News, Dated Four Days Before Bailout

By MATT JAFFE and NED POTTER
March 9, 2009


An AIG report to the Treasury Department last month warned that if the government didn't come to its rescue again, its collapse would trigger a "chain reaction of enormous proportions" that would "bankrupt the entire system" and make it impossible for AIG to repay the billions it already owed the U.S. government.

American International Group, the struggling insurance giant, warned the Obama administration in a draft report of a A draft report, obtained by ABC News, and marked "strictly confidential," said, "the failure of AIG would cause turmoil in the US economy and global markets, and have multiple and potentially catastrophic unforeseen consequences."

Four days later, AIG was given $30 billion in federal aid on top of the $130 billion it had already received.

more...

http://abcnews.go.com/Business/story?id=7040420&page=1?ref=fp3

[skooooo]

1. What are they going to hold their breath until they turn blue??

Honest to god, these corporations sounds like 2 year olds sometime...

[On the Road]

2. When You Look at the Reaction to Lehman in September

I don't have the slightest doubt that AIG's statements are accurate. It is incredibly maddening to have to pick up all the pieces.

[Tierra_y_Libertad]

3. "Give us the money or we'll kill your economy." The Tony Soprano version of high finance.