AIG the latest to go begging for billions

American International Group is latest financial firm to go begging for billions from investors. The global insurance firm reported a gigantic $7.81 billion net loss in the first quarter, the most in the company's history, due to writedowns on complex derivatives contracts (think credit default swaps) and losses on other investment holdings (residential mortgage backed securities, structured securities and so on). So it's raising $12.5 billion in stock, debt, and other equity-linked securities. Standard & Poor's cut its rating on AIG to AA- from AA in the wake of the news.

Good thing that Alan Greenspan and Treasury Secretary Henry Paulson just told us the worst of the credit crisis is over. Otherwise, I might be worried.