AIG on the Brink of Collapse Months after Receiving $150 Billion Bailout
American International Group (AIG), one of the largest insurance companies in the world, is preparing to file for bankruptcy despite having recently received $150 billion from the U.S. Government. Once the largest insurance company in the world, AIG is said to be suffering from a $60 billion loss, which is the largest corporate loss in history.
About the AIG Bailout
As numerous banks and financial corporations around the country began to collapse last year, the U.S. Government began passing out billions of dollars in loans to keep them afloat. AIG, one of the largest insurance companies, received an astounding $150 billion, after suffering major losses due to investments linked to the housing market. As a result, the government now owns an almost 80-percent stake in the company.
Even after receiving the bailout, AIG is still suffering as the bailout is said to have only kept the company operating over the past few months. Currently, the company has been talking with government officials to try and secure more funding.
Other Bailout News
Investors are growing increasingly concerned that the government will nationalize the largest U.S. banks. These fears have resulted in major stock indexes dropping sharply. The good news is that various factions of the government, including the Treasury Department, the White House, and other officials like the Federal Deposit Insurance Corporation say that they have no desire to nationalize private banks.
The hope is that with banks and even automakers receiving the no-strings-attached bailout funds, the economy will restore itself back to healthy state. But the question on many minds is, will AIG be able to recover?