AIG Insurance Bailout
Thursday March 5, 2009
The US Government announced yesterday that it will provide embattled insurance company AIG with a further $US30 billion ($46 billion) in federal assistance. This is on top of the more than $US150 billion that was provided last year in an attempt to protect the company from the home mortgage crisis and the collapse of global financial markets.
This latest bailout coincides with the insurance giants' posted fourth-quarter loss of around $US60 billion on Monday. It is the company's biggest ever quarterly loss and one of the biggest total losses in US history.
The move is the latest attempt to prop up the ailing company with the US Government fearing that if AIG were to go under the affect on the economy could be disastrous. Regulators and investors alike will have to now wait and see whether this strategy will help stabilize the company or if AIG is in fact doomed to failure.
Share This