AIG will it survive.

Us Insurance giant AIG ( American International Group) is racing against time to raise 70 to 75 billion dollars by Wednesday. This comes after the collapse of Lehman brothers which went in to bankruptcy. Markets, Investors and people around the world are focused on AIG would be able to raise the amount. Collapse of Lehman brothers sounding alarm bell on Wall street and other international markets. Financial experts warning about recession in America for long time now. AIG incident comes after another important Bank Merrill Lynch was bought out of trouble by Bank of America.

AIG incident is ringing alarm bells inside India with Reserve Bank of India asking Tata AIG about their finacial position. AIG has two insurance tie up in India with Tatas. Another incident is ICICI seems to in deep trouble with its Overseas branches having bonds issued by Lehman brothers worth nearly 350 Crores. The news already made great negative impact on Indian stock market with stocks closing flat after trading low.

Wall Street journal informs us that US Federal Reserve asked two important banks in America Goldman Sachs Group and JP Morgan Chase to support AIG by making loans available to it.

AIG has more than 70 million customers worldwide who would find themselves without Insurance if AIG goes bankrupt. Shares of AIG are trading very low after the incident reported. Main credit rating agencies are downgrading AIG.