Insurer American International Group’s ability to restructure its business and repay billions of dollars to the U.S. government remains in doubt, U.S. congressional investigators said in a report.
However, the company’s operations have started to show signs of stabilizing in mid-2009 with the help of the bailout money, said the report from the Government Accountability Office, the investigative arm of Congress.
AIG’s total bailout package from the government, which includes the purchase of toxic assets, is as much as $182.5 billion. The insurer, which has not drawn down all the funds available, currently owes about $80 billion in loans.
The GAO said the U.S. government remained exposed to credit and investment risks that could mean the Federal Reserve and Treasury would not be repaid in full. “The ultimate success of AIG’s restructuring and repayment efforts remain uncertain,” the GAO report said.
Was this article valuable?
Here are more articles you may enjoy.
Viewpoint: Who Gets Credit for Successful Renewal During Soft Reinsurance Market? 
After 55 Years in Florida Insurance, Tom Lynch Reflects on Agencies, Changes Needed 
Zurich CEO Says Staff Let Go as Regulator Finma Imposes Partial Sales Ban 
Berry Producer Driscoll’s Sued Over Alleged Greenwashing, Use of Forever Chemicals From This Issue
