• Around the globe commercial banks and you will capital financial institutions could have suffered loss into the money and credit lines in order to AIG as well as on types contracts and other deals, possibly ultimately causing sustained restrictions for the supply of borrowing to help you home owners and you may people.
• Depend on various other insurance vendors could have been affected, causing a possible run-on the industry.

Despite access to this type of a lot more credit place, AIG proceeded to stand big exchangeability pressures regarding losings with the domestic home loan-supported bonds, and its own contact with Dvds contracts

Given the unusual and exigent products at the time, the possibly far-reaching consequences out of an AIG personal bankruptcy required policymakers for taking decisive step to help you intervene. Continue reading The quantity available to AIG underneath the credit business are together with less of $85 million to help you $sixty billion →