AIG bankruptcy

AIG known as American International Group had been on the brink of bankruptcy as a private market solution to the nation's largest insurer's problem failed to materialize. Shares of AIG slumped 30% to $2.60. AIG suffered a liquidity crisis following the downgrade of its credit rating. The AIG Financial Products had entered into credit default swaps to insure $441 billion worth of securities originally rated AAA.On September 14, 2008, AIG announced it was considering selling its aircraft leasing division, in an effort to raise necessary capital for the company. But on September 16, AIG's stock dropped 60 percent at the market's opening.