Monday, November 3, 2008

AIG Bailout Won't Work?

This Washington Post article has some interesting news on AIG's bailout. (I know I linked to a Houston Chronicle reposting, but the Washignton Post requires a password) Because I am an employee of AIG I won't post any commentary.

"A number of financial experts now fear that the federal government's $143 billion attempt to rescue troubled insurance giant American International Group may not work, and some argue that company shareholders and taxpayers would have been better served by a bankruptcy filing."

"Echoing some other experts, Ann Rutledge, a credit derivatives expert, said she is not sure how badly the financial system would have been rocked if the government had let AIG file for bankruptcy protection"

"What we see now are a lot of games by the government to keep these institutions going with a lot of cash," she said.

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