FYI about AIG receivership
If AIG goes into bankruptcy, it is called receivership. I worked on the receivership of Executive Life, a Millken related firm about 16 years ago. They had the highest Best insurance rating the day before the filing.
What happened to those affected - retirement annuities, the Califorinia lottery, life policies were all marked down 70 to 90 percent. Lottery winners who thought they were getting 50k a year were getting 5k. Retirees from companies and government entities that used Executive Life to handle the funds had their monthly income drop 90%. Some whole life policies retained 30% of the value.
Retirement funds in this case and in the case of AIG do not come under ERISA guarantees. There are state pools that are privately funded by the industry, but those funds do not come close to what AIG will need. In fact it will deplete most of them. The government and financial institutes do not care about the little guy. They are covering themselves to limit losses that will cause other institutes to fall.
AIG is almost 700 billion in debt. It will take years to settle.
If you or friends are affected by AIG you need to be aware you are not protected and need to adjust your life style quickly if they file.