Rhode Island is acting to safeguard the estimated $131 million it has in investment accounts managed by financially struggling insurance giant American International Group.
State officials have formed a “SWAT team” to avert a worst-case scenario in which Rhode Island would lose access to its money, jeopardizing tens of millions of dollars needed for construction projects already under way.
General Treasurer Frank Caprio acknowledged that an AIG collapse might place a new burden on state and federal taxpayers.
But some fears were eased when the federal government announced an $85 billion bailout of AIG.
Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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