Tuesday, March 10, 2009

AIG Zombie Plague

So apparently AIG has an exposure of $1.6 TRILLION in derivatives exposure... according to this Scribd document found here. It is supposedly an internal document from AIG. It provides various analysis on subjects such as the systemic risk exposure, the failure chain of impact, and other interesting/scary data such as the fact that AIG insures up to 97% of Fortune 500 companies. I found this linked off of a Boingboing.net posting...

From the Linked supposed AIG document

AIG's business model a sprawl of $1 trillion of insurance and financial services businesses, whose AAA credit was used to backstop a $2 trillion dollar financial products trading business has many inherent risks that are correlated with one another. As the global economy has experienced multi-sector failures, AIG’s vast business has been weakened by these multi-sector failures.


Systemic risk afflicts all life insurance and investment firms around the world. Thus, what happens to AIG has the potential to trigger a cascading set of further failures which cannot be stopped except by extraordinary means.

Like a box of chocolates..... or a Zombie plague.... you never know who in your group got bit until its too late.... chomp chomp

UPDATE:
My friend Joe B. found this extra bit of info from Bloomberg and linked me... check it out here..

No comments: