By Dave Lindorff
AIG, the quintessential blue-chip, one of the 30 companies that
compose the Dow Jones Industrial Average, a company that in 2000
boasted a market capitalization of $217 billion, making it the largest
financial institution in the world, is teetering on the brink of
collapse. Worth just $7 billion today, the future of what was until
recently the world’s largest insurance company is hanging by a
thread—that thread being the willingness of Wall Street institutions
like Goldman Sachs and Morgan Stanley, themselves facing credit issues,
to come up with $75 billion in rescue loans.
It used to be that investors who were worried about financial
markets, or who didn’t like to take big risks, would put their money in
what were called “blue chips”—companies that were deemed conservative,
safe investments that could weather any storm. They had names like
AT&T, General Motors, Ford, Boeing…and AIG.