GAO: AIG is stabilizing

I don’t know how much relief this article is going to provide people, but for what it’s worth, here’s a report from the NYT:

The research arm of Congress reported on Monday that the American International Group’s financial condition had stabilized but that it was not clear whether the giant insurance group would ever be able to repay the federal government.

The Government Accountability Office said the $182 billion bailout package had succeeded in breaking A.I.G.’s calamitous fall and had produced signs of improvement in its insurance businesses. But the company’s ability to restructure and survive over the long term depends on “market conditions and continued government support,” the office concluded.

Hmmm. OKAY. (That’s me trying to avoid sarcasm). Anyway, I think the most essential line from the report is this: (emphasis mine)

Paying off the debt to the government will be a slow, hard process, the report suggested, because raising the money will mean selling businesses that make up 65 percent of the company and employ roughly 70,000 people.

Source: NYT


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