American International Group has paid back about $62 billion of its $183 billion debt to the government, but whether it can repay the full amount remains uncertain, an official study concluded last week.
"The sustainability of any positive trends of AIG's operations and repayment efforts is not yet clear. The government's ability to recoup the federal assistance money depends on the long-term health of AIG," according to a General Accountability Office report.
And while the Federal Reserve and Treasury have taken steps to protect the government's interests, "risks still remain," according to the GAO, which concluded that "AIG's ability to divest its assets to make repayment relies heavily on conditions in financial markets."
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
