It could be insurance giant American International Group. NY Times reports AIG is seeking a $40 billion bridge loan from the Federal Reserve, “as it faces a potential downgrade from credit ratings agencies that could spell its doom.”
The company lost $13.2 billion in the first six months of 2008, largely owing to declining values in mortgage-related securities held in its investment portfolio and collateralized debt obligations it owns. We wrote about how these same type of investments have hurt Morgan Keegan investors (Investment Nightmare).