Aig Deal Scares Wall Street

Summary


NEW YORK - Wall Street plunged again Wednesday as anxieties about the financial system ran high after the government's bailout of insurer American International Group Inc. left investors with little confidence in many banking stocks. The Dow Jones industrial average lost about 450 points, giving it a shortfall of more than 800 so far this week.

As investors fled stocks, they sought the safety of hard assets and government debt, sending gold, oil and short-term Treasury notes soaring.

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Aig Deal Scares Wall Street

The market was more unnerved than comforted by news that the Federal Reserve is giving a two-year, $85billion loan to AIG in exchange for a nearly 80 percent stake in the company, which lost billions in the ri...

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