When the Fed should be there they are rather quiet. AIG is a national treasure. It has businesses in over 130 countries with some 10,000 employees. The company is solvent. It just needs to raise cash to cover its business until it sells some of its assets. All businesses other than that damn mortgage side is making money. If a company is SOLVENT the Fed should do something to help particularly when failure of such a company can have dire affects on the financials markets in the US and around the world.
Excellent point. Which other financial company is more important to the financial world than AIG? Undoubtedly it would come back after chapter 11 if it comes to it. The question is can it recover without filing for bankrupcy.