AIG's dramatic downfall goes on

The former world's number one insurer has posted a loss of 60 billion USD in the fourth quarter of 2008. The total 2008 losses are estimated at 99.3 billion USD. On the stock market, the company has collapsed by 96% since last September.

These disastrous results have compelled the American government to intervene once again to bail out AIG. Following the 150 billion USD rescue plan, the federal authorities may be required to inject another 30 billion USD, reduce the interests of the 60 billion USD credit and soften the terms of their investment as golden shares. On the other hand, AIG will have to accept a split-up into three entities: the first one will target Asian operations; the second one will address life insurance while the third one shall be for property class of business.

The State's help will enable AIG to stay out of trouble, avoiding a systemic bankruptcy whose fallout might be disastrous.