AIG Unit Keeps $2.4 Billion From Asset Sales as Taxpayers Wait

[Heidi]

Source: Bloomberg

July 28 (Bloomberg) -- American International Group Inc., the insurer dismantling itself to repay U.S. loans, used $2.4 billion from asset sales to shore up a property-casualty unit instead of paying down its government credit line.

Proceeds from the two biggest business divestitures New York-based AIG announced so far were left with Chartis Inc., formerly known as AIU Holdings Inc., to improve the firm’s capital. AIG was required to hold the funds by regulators and rating firms that monitor the insurer’s ability to pay policyholder claims, said Mark Herr, a company spokesman.

The insurer’s need to retain some sale proceeds may draw questions from lawmakers about whether AIG can repay loans within its government bailout, which ballooned to $182.5 billion. AIG’s debt on a Federal Reserve credit line exceeded $40 billion most of this year, even after the company announced $6.7 billion in asset sales since being rescued in September.

“The taxpayer should not have been exposed to these risks,” said Representative Brad Sherman, a California Democrat on the House Financial Services Committee, in an interview. “We’re going to lose something on the AIG bailout, let’s hope it doesn’t have too many digits.”



Read more: http://www.bloomberg.com/apps/news?pid=20601103&sid=acpqG2YokZKo#

[Whoa_Nelly]

1. We bailed their asses out

Five years is too long for them to pay back this debt.
They are greedy assholes :grr:

It is beyond the time for single-payer health care for our nation.

[sarcasmo]

2. There is no control over Greed. AIG is one GREEDY company.

[Heidi]

3. I agree that greed itself cannot be regulated,

but compensation to CEOs, directors and shareholders can easily be regulated (in cases of outstanding debt to the taxpayers). I think what a lot of us fail to understand is that we the people are not only general stakeholders in these companies, but--now, with our tax dollars at risk--informal shareholders, as well. I believe we should exercise to the fullest extent our best interests as stakeholders and informal shareholders. :hi: