A number of financial experts now fear that the federal government’s $143 billion attempt to rescue troubled insurance giant American International Group may not work, and some argue that company shareholders and taxpayers would have been better served by a bankruptcy filing.
The Treasury Department leapt to keep AIG from going bankrupt on Sept. 16, and in the past seven weeks, AIG has drawn down $90 billion in federal bailout loans. But some key AIG players argue that bankruptcy would have offered more structure and greater protections during a time of intense market volatility.
AIG declined to comment on the matter.
Ugh. Read it all.
Big surprise. Now I’m waiting to hear that “a number of financial experts fear that the federal governments ___ trillion attempt to rescue ____________ may not work….” You fill in the blanks.
But they got a nice retreat out of it at the nominal cost of $475,000+ so it wasn’t all WASTED or anything.