AIG May Not Repay Its Taxpayer Tab
September 23rd, 2009Mmm hmm.
Via: ABC News:
One year after the biggest corporate bailout in the country’s history, a government watchdog office Monday warned that American taxpayers may not recoup the full $182 billion given to embattled insurance giant American International Group.
“AIG’s ability to restructure its business and repay the government is unclear at this time,” the Government Accountability Office said in a new report released Monday.
As of the start of September, the company’s outstanding balance of taxpayer aid was $120 billion.
It was a year ago this month that AIG received the first chunk of a government bailout that has since grown to $182 billion. The federal money, noted the GAO, has since helped stabilize the insurance giant, which this year posted a $1.8 billion second-quarter profit, its first profit since 2007.
However, the GAO said that the company still relies heavily on government help as its source of liquidity and capital.
