This link gives a better picture of actual status:
http://www.3news.co.nz/News/BusinessNews/AIG-posts-US617B-4Q-loss-bailout-is-restructured/tabid/421/articleID/93609/cat/52/Default.aspxSo far AIG has shed its stake in 9 other businesses and has plans to sell some of the jewels in its crown. IMHO the last 3 sentences tell a useful story. Compare the size of the loss to the drop in revenue. Consider the status of AIG's divisions and the parts of itself that it plans to sell. Also consider that the Government if it comes to it can unravel CDS positions. You may say "never" but they confiscated gold in the Depression for the greater good. Finally, some of these actions can be considered highly inflationary. you may doubt the values in AIG's asset section but consider the effects of a few years of mega-inflation. A cynic might say "bring it on, that'll be great news for the US and its householders."
"... They ne'er cared for us
yet: suffer us to famish, and their store-houses
crammed with grain; make edicts for usury, to
support usurers; repeal daily any wholesome act
established against the rich, and provide more
piercing statutes daily, to chain up and restrain
the poor. If the wars eat us not up, they will; and
there's all the love they bear us."
-- Shakespeare: Coriolanus, Act 1, scene 1
