AIG Loss, Bailout 3/2/09 March 2, 2009

AIG reported a 61 billion dollar loss for the 4th quarter and received a separate bailout today, March 2, 2009. In an effort to stop systemic risk, AIG will receive an additional 30 billion to stop the damaged insurer from going bankrupt.

American International Group's ( AIG ) stock price is actually going up on this news in pre market trading while futures tank. AIG is trading at $0.52 - Up 24%.

As part of the latest bailout effort, the Fed will reduce a $60 billion credit facility in exchange for taking a preferred interest in AIG subsidiaries American Life Insurance Company and American International Assurance Company. The credit line will not fall below $25 billion.

CNBC's Steve Leisman said that for many years AIG took huge risk with no regulation and when the music stopped, there wasn't even a chair in the room to sit down on.

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