AIG. AIG is a huge insurance company, and it got into deep finan- cial trouble in the 2008 financial crisis. As of September 30, 2008, AIG's simplified balance sheet looked approximately like this (all figures in billions): Assets Liabilities $400 financial securities $913 general liabilities $38 government loan $622 other assets $71 stockholders' equity $1022 $1022 W (a) By late fall 2008, things had gotten worse. It turned out that $50 of the other assets were distressed, and could no longer be counted as assets. Rewrite the balance sheet, and find the new net worth. (b) Things got worse still. There was a decline of 10% in the fi- nancial securities. Also, AIG had a new liability of $35 in credit default swaps. Again rewrite the balance sheet and show the stockholders' equity. (c) Finally, the government announced a bailout plan. One thing the government did was buy the $50 in distressed assets at their full face value by giving AIG $50 in cash. Show how this changed the balance sheet. (d) The other terms of the government plan were to lend AIG $60 (a new liability). AIG took this cash and paid off the credit default swap liability. Separately, the government bought $40 in shares in the company (again, giving AIG cash). How does this change the balance sheet? AIG. AIG is a huge insurance company, and it got into deep finan- cial trouble in the 2008 financial crisis. As of September 30, 2008, AIG's simplified balance sheet looked approximately like this (all figures in billions): Assets Liabilities $400 financial securities $913 general liabilities $38 government loan $622 other assets $71 stockholders' equity $1022 $1022 W (a) By late fall 2008, things had gotten worse. It turned out that $50 of the other assets were distressed, and could no longer be counted as assets. Rewrite the balance sheet, and find the new net worth. (b) Things got worse still. There was a decline of 10% in the fi- nancial securities. Also, AIG had a new liability of $35 in credit default swaps. Again rewrite the balance sheet and show the stockholders' equity. (c) Finally, the government announced a bailout plan. One thing the government did was buy the $50 in distressed assets at their full face value by giving AIG $50 in cash. Show how this changed the balance sheet. (d) The other terms of the government plan were to lend AIG $60 (a new liability). AIG took this cash and paid off the credit default swap liability. Separately, the government bought $40 in shares in the company (again, giving AIG cash). How does this change the balance sheet