For AIG, the hits just keep coming. The latest: the Fed has agreed to make another $38 billion available to the disgraced insurer to keep its troubled lending securities business alive. That unit started bleeding when the money it invested (essentially collateral from customers) in long-term instruments, including some of the mortgage-backed variety, soured, making it impossible to pay off customers as the returns borrowed securities. This latest injection comes on top of an $85 billion credit to keep it from total collapse due to its CDS-related liabilities. The latest government move followed some really damaging testimony in Congress, during which former CEOs blamed accounting rules and others for the demise of the company. Such woes did not stop the large executive payouts and lavish parties. This is less of a PR nightmare now that AIG has been nationalized. Still, people want to know what the long-term plan is for the company. To wind the toxic assets and then put it out of business?

For more:
- here's the AP article

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