Straw poll: who is going to cost the government more money? Automakers, AIG, or Citibank?
Until just now, my money was on Citi, in the long run; it's just so damn BIG. But AIG is doing its best to get its mojo back:
The American International Group, the battered insurance giant that is now effectively majority-owned by the federal government, is in talks to receive more government aid as it prepares to record another giant loss.
A.I.G. could take as much as another multi-billion dollar hit when it reports earnings during the next week. It expects to disclose losses across a wide variety of holdings, from commercial real estate to credit default swaps, the private contracts that helped lead it to the brink last fall. A loss of that magnitude could lead to another sweep of credit rating downgrades, prompting a fresh round of capital demands that could again pose a serious risk to the firm and its trading partners.