The U.S. Government Accountability Office says that AIG has “begun to show signs of stabilizing.”
But that doesn’t mean taxpayers are sure to get their $120.7 billion outstanding balance back.
GAO: While federal assistance has helped stabilise AIG’s financial condition, GAO-developed indicators suggest that AIG’s ability to restructure its business and repay the government is unclear at this time. Indicators of AIG’s financial risk suggest that since AIG reported significant losses in late 2008, AIG’s operations, with federal assistance, have begun to show signs of stabilizing in mid 2009.
Similarly, after a declining trend through 2008 and early 2009, indicators of AIG insurance companies’ financial risk suggest improved financial conditions that were largely results of federal assistance. Indicators of AIG’s repayment of federal assistance show some progress in AIG’s ability to repay
the federal assistance; however, improvement in the stability of AIG’s business depends on the long-term health of the company, market conditions, and continued government support. Therefore, the ultimate success of AIG’s restructuring and repayment efforts remains uncertain.
U.S. Rep. Edolphus Towns, chairman of the House Committee on Oversight and Government Reform, is apparently considering debt relief after meeting last week with Hank Greenberg, according to the NYT. Which pretty much means taxpayers will get screwed.
But maybe we can all breathe a sigh of relief that AIG won’t continue to swallow up even more of our money into their giant blackhole balance sheet.
Here’s the full thing:
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