AIG's Payback to Taxpayers in Doubt

Government Watchdog Says Disgraced Insurance Giant AIG May Not Repay All of Its $182B Taxpayer Tab

By MATTHEW JAFFE

 

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.

One year after the biggest corporate bailout in the country's history, a government watchdog Monday warned that American taxpayers may not recoup the full $182 billion given to insurance giant AIG.

"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.

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