In September of 2008, AIG's shares fell up to 30% while its stock was deflated by 70% after warning investors that it would be hit severely due to credit default swaps written to guarantee security to subprime mortgages. This was all during the time AIG was providing $400 billion in credit protection to banks and other clients around the world. On September 16, 2008, FRBNY (Federal Reserve Bank of New York) graciously gave AIG a two-year security loan to prevent any reverberations in the world economy, as well as to stabilize AIG itself. The loan was for $85 billion. Due to the large amounts of money AIG owed to the U.S. government and FRBNY, I say that this corporation as largely contributed to the recession we are in today. In recent quarters, AIG CEO Robert H. Benmosche has stated that it is AIG's top priority to eventually repay the United States the money it owes although they do realize it will not happen immediately due to how much money they owe.
-USA Today http://www.usatoday.com/money/perfi/insurance/2008-09-12-aig-shares-drop_N.htm
-http://www.aigcorporate.com/aboutaig/index.html
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