They were talking about this situation on CNBC this am. Its the parent AIG holding company that has the problem. The subsidiaries are not likely to be affected directly, but if they file for bankrupcty everything could get sucked in.However, now they are talking again about commerical bridge loan; it is not possible. AIG lacks suitable collateral for such a loan. So a fed assist or access to the Federal Reserve System might still come through for AIG.Otherwise, the Lehman situation will probably follow. Selling profitable subsidiaries is one of the easiest ways to raise cash once they are in bankruptcy. Letting profitable businesses collapse in the chaos is not in anyone's interest (though competitors are probably doing quite well picking off the best business and people).Successful on going businesses will probably be OK, but in a bankruptcy one still has to worry until the court agrees and the deal goes through.
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