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 released on Monday.
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.
(Reporting by Rachelle Younglai; Editing by Lisa Von Ahn)
Was this article valuable?
Here are more articles you may enjoy.