Let's start with the basics. Who or what exactly is the American International Group?
Well, AIG is by their own information "a world leader in insurance and financial services" and "the leading international insurance organization with operations in more than 130 countries and jurisdictions."
Heady stuff, right? I mean, we are talking about the worldwide leader in insurance services and one of the largest financial services organizations on earth as well. We are talking here about the real money. Not just big money, but 'real' money. The kind of money that moves governments and shakes nations.
The folks at AIG are just one of many financial services companies that have undertaken huge losses and faced dire straights as the American economy has gone into reverse over the past year. They blame their particular problems largely on what are called 'credit default swaps" (CDS) in the industry.
