by Bill McBride on 3/09/2009 03:28:00 PM
Monday, March 09, 2009
From Bloomberg: AIG Told U.S. Failure May Cripple Banks, Money Funds
American International Group Inc. appealed for its fourth U.S. rescue by telling regulators the company’s collapse could cripple money-market funds, force European banks to raise capital, cause competing life insurers to fail and wipe out the taxpayers’ stake in the firm.Here is the “strictly confidential” document.
AIG needed immediate help from the Federal Reserve and Treasury to prevent a “catastrophic” collapse that would be worse for markets than the demise last year of Lehman Brothers Holdings Inc., according to a 21-page draft AIG presentation dated Feb. 26, labeled as “strictly confidential” and circulated among federal and state regulators.
Posted by Bill McBride on 3/09/2009 03:28:00 PM