Bear Stearns was bailed out, along with Freddie and Fannie, while Lehman Brothers was allowed to fail. But with a trillion dollars in assets, American International Group turns out to be big enough to threaten the global economy, moving the Federal Reserved to agree to what the New York Times calls "the most radical intervention in private business in the central bank's history." The insurance company does business all over the world, insuring cars, houses, retirement plans and companies, along with a lot of exotic financial instruments based on risky mortgages. Why does AIG qualify for $85 billion in American taxpayers' money? Will unprecedented government intervention ease the private financial crisis? Will other troubled companies be standing in line?
AIG's Global Reach, What's Next?
Justin Lahart - Economics Reporter, Wall Street Journal, Raghuram Rajan - former Chief Economist, International Monetary Fund, David Smick - global financial market strategist, Nomi Prins - Demos - @nomiprins, Steven Davidoff - Professor, Connecticut School of Law