This is fascinating:
The American International Group is rapidly running through $123 billion in emergency lending provided by the Federal Reserve, raising questions about how a company claiming to be solvent in September could have developed such a big hole by October, The New York Times’s Mary Williams Walsh says.
Some analysts say at least part of the shortfall must have been there all along, hidden by irregular accounting.
“You don’t just suddenly lose $120 billion overnight,”
I am obsessing with AIG because I was talking to them back in August
about a global treasury project to better manage their liquidity. On
the one hand I was disappointed when the project evaporated as AIG was
imploding, but relieved on the other hand – phew! escaped that nightmare!
Turns out it would have been a very complicated mess to try to solve. But they shouldn't
have killed the project, they need that treasury transparency and
efficiency now more than ever.
Read more about AIG's missng cash:
- NYTimes DealBook blog
- NYTimes Article