Market rumours that AIG to be split up.

What does the future hold for AIG? The company has put out statements emphasising that it is carrying on business as usual.

But senior industry figures, who preferred their names not to be given, revealed to Global Reinsurance magazine that many believe that AIG will be split up.

We could see the world's biggest run-off since Equitas (which was was formed to save the Lloyd's market in 1996).

"The Fed's emphasis on the fact that their loan is to avoid a "disorderly failure" of AIG rather carries with it the implicit acceptance that AIG is indeed a failure," said Peter Taylor a Partner at law firm Lovells. "It would therefore be even more extraordinary than the events of the last weekend to envisage AIG's return to its traditional markets in a shape that bore much similarity to its current operations," he added.


Another problem for AIG is retaining key staff in the current enviornment. How many will wish to work for the US government, which is taking nearly 80% of AIG?