The Unraveling of AIG

Once the gold standard in the insurance industry, AIG is the latest victim of the meltdown in the credit markets
A man enters the American International Building, world headquarters of American International Group (AIG) September 15, 2008 in New York City Getty Images

The insurance business is all about risk—understanding it, minimizing it, pricing to compensate for it. But American International Group (AIG), the biggest insurance company in the world, seems to have had very little concept of the risk it held in its own businesses.

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