New Overnight Developments Abroad: AIG Downgraded and Stocks Tumble Further

Both Moody?s and S&P reduced ratings on troubled AIG, which needs to raise a huge amount of capital today.
Fed and U.S. Treasury have not stepped in to help AIG. Markets are pricing in a 25-basis point Fed ease after today?s FOMC meeting.

Short-term money markets are under heavy strain. Scant interbank lending. Rates sharply higher in Asia, prompting liquidity injections of $23.7 ...

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