AIG to Officially Shut Unit That Failed in Financial Crisis
December 20, 2022 by Leslie Scism
American International Group Inc.’s infamous Financial Products unit—the one that nearly took down the global economy in 2008 with wrong-way bets on mortgages—is on its way to an official demise.
AIG announced today that the unit has filed a voluntary petition for chapter 11 bankruptcy in Delaware, as a way to close for good. Back in 2008, the woes of AIGFP, as it is known, caused its parent to teeter on the edge of bankruptcy.