The American International Group is seeking a $40 billion bridge loan from the Federal Reserve, as it faces a potential downgrade from credit ratings agencies that could spell its doom, a person briefed on the matter said Sunday night.
Ratings agencies threatened to downgrade the insurance giant’s credit rating by Monday morning, allowing counterparties to withdraw capital from their contracts with the company. One person close to the firm said that if such an event occurred, A.I.G. may survive for only 48 hours to 72 hours.
A.I.G. locally just moved into a newly constructed building on the city's southwest side. A.I.G here in Springfield is what's left of the old Franklin Life company. They recently vacated the old, grand FL building (now occupied by the Illinois State Police) to move into their new three-story, nondescript complex. We are talking about hundreds of workers here. I hope this news doesn't foretell the loss of all those jobs.