The capital AIG is receiving--again--from the government haskicked off a new round of speculation as to the eventual directionand possible expansion of the Troubled Asset Relief Programunveiled this Fall will take, especially under an ObamaAdministration. "Hands from every sector will be reaching out," oneanalyst tells GlobeSt.com. "The argument that AIG cannot be allowedto fail will be--and is--increasingly being made for otherindustries as well, especially the auto industry."

The concern among financial institutions is that the focus ofthe bailout may expand far beyond the original mandate of helpingbanks that were disabled by toxic real estate debt, this analystsays, thus diluting its impact. AIG, of course, falls under thecategory of financial institution, but the terms are so generous itmay be hard for other sectors to ignore the government'slargess.

To recap, AIG has remained troubled--even after the federalgovernment first rode to its rescue with an $85-billion securedrevolving credit loan on Sept 16, in exchange for a nearly 80%ownership stake. By Oct. 8, the government had to follow up withanother loan for $37.8 billion. At the end of last month AIGaccessed $20.9 billion via the government's new commercial paperprogram that had been set up to inject short-term liquidity in themarket.