The question is will AIG survive? AIG has basically two terrible choices, they can sell prized assets to their competitors or they can
give a large portion of their business to the US Govt. AIG is faced with huge losses. The US government is trying to keep the giant
insurer from failing thus causing a falling dominoe effect on other institutions and companys. Remember the word counterparty risk.
AIG sold all types of Derivative productives and if these start failing Pandora will surely exit her box. The dominoes will not just fall…
but cascade. This is why the US government is so keen on not letting AIG fail.