Why was Lehman dumped and AIG Saved during 2008?
Lehman came back from a near death experience during 1998 LTCM Collapse. They then got into risk management and got their acts together. However slowly all of that again started to fade and due to management arrogance and hubris they defied risk. This led to their collapse in 2008. AIG was more of a systemic entity backing a lot of collateral from other banks. Being more of a systemic risk it was saved. https://knowledge.wharton.upenn.edu/article/the-good-reasons-why-lehman-failed/