Declarations

Get Rid of the Trailers

“People are frustrated. People do not like the idea of having these trailers right next to them five years after Katrina.”

—Councilman Jon Johnson, whose district includes hard-hit eastern New Orleans and the Lower Ninth Ward. Johnson and other City Council leaders say it’s time to get rid of nearly 260 FEMA trailers remaining of the 23,300 installed after Hurricane Katrina flooded New Orleans five years ago. The trailers spoil the city’s image of recovery, Housing and Human Needs Committee members said. A deadline of Jan. 1 has been suggested for removal of the trailers. The council suspended laws forbidding trailers in most yards and driveways after the hurricane, but reinstated them in July 2008. City Hall, FEMA and the Louisiana Recovery Authority must ensure that families still in trailers get the help they need to find decent housing, Johnson and Councilwomen Stacey Head and Kristin Gisleson Palmer agreed. AP

A Continuing Objective

“Our objective remains the same at AIG, which is to repay taxpayers and position AIG over time as a strong, independent company worthy of investor confidence.”

—An anonymous source from American International Group Inc. (AIG) commented on continued negotiations with the U.S. government on a deal through which the Treasury Department would exit its investment in the bailed-out insurer. The situation, however, is still fluid and there are many moving parts, one of the sources said. A possible conversion of the Treasury’s $49 billion preferred stake in AIG into common stock is one of the options being discussed, Reuters previously reported. Such a conversion – which could start as soon as the first half of next year – would possibly raise the government’s stake in AIG to above 90 percent from nearly 80 percent. The Treasury would sell its common stake to investors over time. The sources are anonymous because talks are not public.

In the Same Boat

“There are a lot of us in the same boat south of Interstate 10.”

—Paul McLarty, chief financial officer of Clear Creek, Texas, school district. School districts affected by extensive property damage caused by Hurricane Ike in 2008 have seen their insurance premiums skyrocket and want the state to help pay for it. Clear Creek in 2009 spent $3.6 million on property/casualty insurance, which is driven up by windstorm coverage, McLarty said. The district receives a maximum of $50 million for windstorm coverage, but the district’s assets are valued at about $1 billion. Galveston ISD will spend $1.8 million on insurance this year. After Hurricane Ike in 2008, premiums increased by 40 percent, said Finance Director David Dworsky. Adjusters classified the damage at each Galveston campus as flood-related. The district has spent about $42 million on Ike recovery. Clear Creek’s premiums increased by 230 percent in 2006, the year after hurricanes Katrina and Rita. Insurance premiums for Texas City Independent School District have increased by 825 percent in the past nine years. AP

Topics Catastrophe Hurricane AIG