Amid a wave of upheaval in the banking and mortgage industries, the insurance company American International Group (AIG) is attempting to stave off bankruptcy. On September 12, 2008, AIG's shares dropped 31%. In the wake of the Lehman Brothers bankruptcy of the following Monday, questions arose over the company's future, including rumors of possible bankruptcy.Guardian: Wall Street mauled by Lehman bankruptcy, AIG fears (September 15, 2008) Such consternation was quelled on September 16, 2008, when it was reported that the Federal Reserve would loan AIG $85 billion in exchange for an 80% stake in the company.The New York Times: Fed to Give AIG $85B Loan and Take 80% Stake(September 16, 2008)
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Rejected an offer made by J.C. Flowers & Company, which is leading a group of private-equity firms, made over the weekend of September 13 and 14, 2008WSJ: AIG Scrambles... (September 15, 2008)
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J.C. Flowers & Co's proposal would have allowed the firms to acquire AIG for $8 billion under certain conditions, which would be one-fourth of AIG's current market valueWSJ: AIG Scrambles... (September 15, 2008)
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Asked the Federal Reserve for a $40 billion bridging loan from the Federal ReserveMarket Watch: In Focus (September 15, 2008)
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Granted $85 million loan by Fed on September 16, 2008
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