AIG could be the next to go. We'll know tomorrow.

If it doesn't secure fresh funding by Wednesday September 17, it could be forced to file for bankruptcy, reports The Wall Street Journal. AIG is such a big player. Viewed through certain ways, it is the biggest financial services company on the planet. So if it goes down, it will absolutely rock the world's financial markets. Even more than they have been already.

"Indeed, the company's woes could pose problems in many corners, a concern that has the federal government on watch," reports the WSJ. "AIG's massive assets mean that its millions of traditional insurance customers will likely get claims paid, no matter what happens next. But AIG's shares and debt are widely held, and the firm is used by many companies world-wide to manage a range of risks, including exposure to investments in subprime mortgages. Its demise would potentially make it harder or more expensive for businesses to control their risks and employ debt management."

The problem for AIG is that most of its investments are in property and mortgages, and the chickens are coming home to roost. As the RGE Monitor points out, AIG's issues come from its financial products division which has acted like an investment bank. "AIG is a counterparty in a large number of swap and hedging transactions. It wrote credit default swaps, which insure against corporate default, some protecting against losses on collateralised debt obligations, which have suffered large losses because many of them were backed by mortgage-backed assets."

And who was responsible for this? Hank Greenberg, who was forced out three years ago amidst accusations of accounting irregularities. Greenberg, who steered AIG into the world of collateralised debt obligations, ended up leaving the company a billionaire. Still, AIG's woes have cost him $6 billion over the last week, reports the New York Post.