AIG's Payback to Taxpayers in Doubt
source: http://abcnews.go.com/Business/aigs-payback-taxpayers-doubt/story?id=8632375
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"AIG's ability to restructure its business and repay the government is unclear at this time," the Government Accountability Office said in a new report released Monday.
As of the start of September, the company's outstanding balance of taxpayer aid was $120 billion.
It was a year ago this month that AIG received the first chunk of a government bailout that has since grown to $182 billion. The federal money, noted the GAO, has since helped stabilize the insurance giant, which this year posted a $1.8 billion second-quarter profit, its first profit since 2007.
However, the GAO said that the company still relies heavily on government help as its source of liquidity and capital.
Due to the degree of assistance provided to AIG, the Treasury Department and the Federal Reserve have taken steps to protect the government's interests. They have secured loans with collateral and set up various controls over company management and compensation. The GAO found, however, that despite these steps, "risks remain."
FULL REPORT; http://www.gao.gov/new.items/d09975.pdf
As of the start of September, the company's outstanding balance of taxpayer aid was $120 billion.
It was a year ago this month that AIG received the first chunk of a government bailout that has since grown to $182 billion. The federal money, noted the GAO, has since helped stabilize the insurance giant, which this year posted a $1.8 billion second-quarter profit, its first profit since 2007.
However, the GAO said that the company still relies heavily on government help as its source of liquidity and capital.
Due to the degree of assistance provided to AIG, the Treasury Department and the Federal Reserve have taken steps to protect the government's interests. They have secured loans with collateral and set up various controls over company management and compensation. The GAO found, however, that despite these steps, "risks remain."
FULL REPORT; http://www.gao.gov/new.items/d09975.pdf
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