California State start issuing IOU’s

California will begin issuing IOU’s after the governor and lawmakers failed to reach a budget agreement making it the first time that the state had to resort to such an unusual measure in 17 years.

Last day of AIG exchange offer

Its offer to exchange up to $4.0 billion principal amount of its 8.175% Series A-6 Junior Subordinated Debentures or all of its outstanding unregistered 8.175% Series A-6 Junior Subordinated Debentures.

its offer to exchange up to $3.250 billion principal amount of its 8.250% Notes Due 2018 which have been registered under the Securities Act of 1933 for all of its outstanding unregistered 8.250% Notes Due 2018.

The exchange is expected to expire at 5:00 p.m New York City time today.

Los Angeles Bank will Honor California IOUs

Pan American Bank will honor any warrants presented by existing customers and seeks to accommodate as many new customers as possible.