AIG Going Under:

Discussion in 'Stocks' started by capmac, Sep 15, 2008.

  1. capmac


    AIG, Washington Mutual spreads to widen sharply

    Monday September 15, 9:35 am ET
    By Stephen Bernard, AP Business Writer

    Insurance to cover AIG, WaMu debt to rise sharply, potentially not even be available

    NEW YORK (AP) -- Insurance coverage for American International Group Inc. and Washington Mutual Inc.'s debt might not be available Monday because of concerns about the stability of the companies and the broader financial services sector, an investment banker told The Associated Press.

    "AIG and Washington Mutual spreads will widen dramatically, if they are available at all," said Len Blum, managing director at investment bank Westwood Capital.

    Blum said the cost of insuring debt, known as credit default swaps, will rise for nearly all financial companies Monday because of uncertainty in the market after Lehman Brothers Holdings Inc. said it is filing for bankruptcy protection, and amid reports AIG could be looking to raise up to $40 billion in fresh capital to shore up its balance sheet.