AIG, Health insurance, TARP and HCR

[eilen]

http://www.bloomberg.com/apps/news?pid=20601103&sid=airX8gvnyGmA

]Dec. 3 (Bloomberg) -- Treasury Secretary Timothy Geithner should explain what taxpayers gained by accepting units from American International Group Inc. in exchange for reducing the insurer’s debt by $25 billion, Senator Chuck Grassley said.

“Exchanging debt for equity still leaves taxpayer dollars at substantial risk,” the Iowa Republican said in a letter to Geithner released yesterday.

Republican lawmakers are stepping up a campaign to put a spotlight on Geithner’s role in AIG’s bailout. The rescue, which began last year when he was president of the Federal Reserve Bank of New York, swelled to $182.3 billion. AIG transferred American International Assurance Co. and American Life Insurance Co. to Fed vehicles to lower its debt, the firm said Dec. 1.

The units are to be sold, and New York-based AIG is entitled to a portion of the proceeds if the sales reap more than $25 billion.

Grassley is concerned about “the status of the billions of dollars in taxpayer money that is in jeopardy due to actions by both” Treasury and the Fed, he said in the letter. The request for information was also addressed to William Dudley, president of the New York Fed.

Treasury spokesman Andrew Williams said the department will respond to Grassley’s letter and one from Representative Roy Blunt asking about the bailout. Jack Gutt of the New York Fed declined to comment.

The plan to transfer the businesses was disclosed in March amid the company’s fourth bailout. The deal permitted AIG to pay down its debts while waiting for a recovery in credit markets, which may allow for higher sale prices for the units. <\b>

Anyone wondering who will be bidding on these AIG units (health and life insurance)? Whoever stated that the WH knew what HCR would look like back in March wins the gold star today.

[ananda]

1. Think about this.

By doing nothing and voting NO on everything, the
Reeps are winning.

Why.. because Dems are just continuing the Reep
policies of Bush and by doing nothing and voting no,
the Reeps look good and people will forget that it
was the Reeps who started it and will finish us all
up good and serve us on a platter in hell.

[girl gone mad]

2. really depressing..

that 'The Party of "No!"' is looking more like an awesome campaign slogan than a biting insult.

[Octafish]

3. It's a coincidence kick.

The rec is from a lot of people breathing in concert.