AIG Needs $40 Billion – Anyone?

AIG (AIG) needs $40 Billion or else the rating agencies will spank it hard and downgrade. Oh by the way they need to find it today. Come on when was the last time that a $40 billion dollar deal was put together that fast? When was the last time that a fast deal withstands the test of time?

AIG insists that it is in discussion with lots of parties. The rationale is that if they stave off the rating downgrade it will be cheaper to raise capital later. Does this mean that they will need more capital after the $40 billion?

AIG gets the “Catch a falling knife” award. If you are thinking about class action lawsuits start reading the press releases from AIG. They have all been sufficiently upbeat to keep the investors interested. They never laid out a $40 Billion crisis.
Management has been whistling through the grave yard and has now actually fallen into an open grave.

Stay tuned for more analysis of the “Highway to Hell”