ANSWERS: 1
  • AIG is NOT rich. They lost millions of dollars per minute. Supposedly their holding company participated in risky hedge fund activities over the years, so the mainframe of the company became financially unstable. AIG is very important for many reasons. On an individual level, they insure millions of peoples' cars. They also carry life insurance. On a larger scale, they also insure banks and bonds and large companies. If AIG were to collapse, it could potentially mean total losses in the trillions on many levels.

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