Skip to comments.Time to junk AIG (The government should let it live or die on its own)
Posted on 09/23/2009 6:51:22 AM PDT by SeekAndFind
The federal governments $180 billion effort to prop up American International Group has worked, averting an even bigger financial catastrophe. Now its time for the Obama administration to oversee the dismantling of the failed insurance giant with all due speed.
A report this week from the Government Accountability Office makes clear that AIG would crumble and likely reignite financial fears around the world without the governments massive support.
And the report says its unclear whether AIG will ever pay back the $121 billion in government assistance still coursing through its balance sheet.
The GAO report should provide the administration with all the ammunition it needs to get tough with AIG. The reports conclusions should stiffen the spine of regulators in their dealings with Robert Benmosche, AIGs new $9 million chief executive.
The former MetLife chief executive seems to act as if he has taken over a financial company thats simply made one or two bad decisions not one that nearly brought the global economy to its knees.
Benmosches plan to take his sweet time in selling off AIGs assets might make sense if the insurer could someday stand on its own without governments help.
But the GAO report raises serious doubt about whether AIG will ever be self-sufficient again, noting that the company continues to rely heavily on the federal government as its source of liquidity and capital.
With the worst of the financial crisis now past, its time to break up AIG and move on. AIG rightfully deserves to join Bear Stearns and Lehman Brothers on the ash heap of history.
A dissolution of AIG would serve as an important reminder to Wall Street and giant banks around the world, that theres a price to be paid for becoming too big to fail and then failing.
(Excerpt) Read more at blogs.reuters.com ...
Almost Katrina X 3. Insane.
Ugh. AIG should have never gotten a penny of taxpayer money.
While their at it....do the same with AMTRAK & the Postal Service.
Theft on this scale should require asset forfeiture of all top executives and the board.
And that money went overseas....like leaches they will keep sucking on Obama’s teat.
I guess if Goldman Sachs got it’s money back, it’s ok to let AIG die now.
A monstrous money-laundering operation of which Goldman Sachs was a prime beneficiary. (Thank you, Paulson, Bush and Congress!)
Um, no, that's OUR $180 billion.
It’s past time.