Dead Insurance Company Walking

[lsanderson]

The United States is planning its fourth round of aid to the American International Group, the giant insurer. The government already owns nearly 80 percent of the insurer’s holding company.
By ANDREW ROSS SORKIN and MARY WILLIAMS WALSH
Published: March 1, 2009

The federal government agreed Sunday night to provide an additional $30 billion in taxpayer money to the American International Group and loosen the terms of its huge loan to the insurer, which is preparing to report a $62 billion loss on Monday, the biggest quarterly loss in history, people involved in the discussions said. More

Comments

[artkouros.livejournal.com]

Hey - that's MY insurance company! At least, it is now - they recently bought 21st Century, which covers my car.

[don-fitch.livejournal.com]

Yeah, and one of my insurance companies as well -- they (some time ago) bought The Franklin Insurance Company, and pay me every month on several small-but-not-to-be-sneezed-at Annuity Policies.

I don't think I'd object, though, if The Government were to break AIG up into several smaller companies that would not be Too Big To Fail, as long as the burden of failure fell on the stockholders & EOs, rather than the people who purchased insurance policies from the company.