I think the reason as to why AIG was quick to bailout wall street was because AIG is the one that insures almost if not all these investment banks, now AIG is bailing out wall street so that it doesn't have to deal with the mess when all other investment banks file for bankrupts. What do you think?
AIG is in the business of insuring bonds. Wall Street issued alot of bonds and a large number of them were insured by AIG. The term bail out is starting to get a bit taxing for me as it is being imporperly used in the media and now on this forum. AIG was paid to payout on loss of principal or interest payments and that is what they are doing. It is no more a bail out then when a car owner that has car insurance is written a check for damage that has occurred to their vehicle.
Why AIG did what they did.
Linear Mode
