CME Statement on AIG

"CME Group took an emergency action today to facilitate the reduction of the positions of American International Group, Inc. (AIG) and its subsidiaries and to protect the orderly functioning of the market. The agreed-upon order permits the limited execution of block trades by AIG in certain CME and CBOT commodity futures products, including Soybeans, Soybean Oil, Corn, Wheat, Live Cattle and Lean Hogs, for the purpose of liquidating a portion of AIG's open positions. A block trade is a privately negotiated transaction between eligible contract participants that is executed outside of the public auction market. The order is effective through Wednesday, September 17, 2008."

Credit Crunch Today

AIG
American Insurance Group
American Insurance Group
Largest Insurance firm in the US.
BofA
Bank of America
David Paterson
Governor of New York
Distort and Short
Strategy allegedly used by some short-sellers to drive down the share price of companies.
John Thain
Last CEO of an independent Merrill Lynch (2008)
Lehman Brothers
Once great investment bank bought down in the Credit Crunch.
Lehman Brothers International (Europe)
Lehman Brothers European subsidiary based in London.
Naked short-selling
Short selling where the seller does not borrow the shares first.
Short-sellers
Traders who aim to profit from share declines. Typically they borrow a stock, sell it and buy it back after its price has decreased.