Now in this article I will be discussing the "QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2008" a report pursuant to the account of what actually occured during the global financial crisis of 2008. AIG an american company was at the center playing a major role in the collapse of the global economy in domino effect. The housing market affected AIG's balance sheets very negatively, as soon as the housingmarket bubble burst. AIG increased real estate investments in the housing matket while also holding a bond portfolio that need agent risk and portfolio management. Lehman brothers also played a major role in the 2008 financal crisis, nonetheless could never be saved from a distressed state because it had an unmanaged over-blown bond portfolio. In addition to reviewingAIG’s results for the three and nine months ended September 30, 2008, this MD&A supplements and updates the information and discussion included in the 2007 Annual Report on Form 10-K to reflect developments in or affecting AIG’s business to date during 2008. Throughout this Management’s Discussion and Analysis of Financial Condition and Results of Operations, AIG presents its operations in the way it believes will be most meaningful.AIG’s securities lending collateral pool held strategic review as well as the liquidity issues arising from AIG’s securities lending program and AIGFP’s super senior multi-sector CDO credit default swap portfolio. On Friday, September 12, 2008, S&P placed AIG on CreditWatch with negative implications and noted that upon completion of its review, the agency couldaffirm AIG parent’s current rating of “AA-” or lower the rating by one to three notches.At September 30, 2008, the aggregate pre-tax gross unrealized losses on fixed maturity and equity securities were $28.7 billion ($18.7 billion after tax).For the three- and nine-month periods ended September 30, 2008, unrealized losses related to investment grade bonds increased $3.0 billion ($2.0 billion after tax) and $13.5 billion ($8.8 billion after tax), respectively, reflecting the widening of credit spreads, partially offset by the effects of a decline in risk-free interest rates.Which threathened the company in to bankruptcy.You can buy my book called "Bear Market trading strategy: A definitive guide to trading distressed securities" to get more insight about trading distressed securities. You can get it on Amazon. To get your hands on this reportand my book you can simply search them on Google, the SEC report is also available online or visit my home page.