Government Grants $30 Billion Stimulus Package to AIG
After reporting its $60 billion fourth-quarter loss to the public, the American International Group (AIG) was granted by the federal government with $30 billion stimulus package that will prevent the possible meltdown of the company.
Meanwhile, earlier reports said the insurance company will split itself to protect some business units that have healthy finances.
The American International Group (AIG), one of the biggest insurance companies in the US, will receive $30 billion stimulus package from the government after its fourth quarter revenue loss amounting to $60 billion.
Earlier report said the company is planning to split itself into smaller divisions to protect some businesses units which manage to maintain its finances healthy, a move also adopted by Citi Group few months ago after experiencing massive losses.
According to AIG officials, the insurance firm will adopt new management structures to keep its finances afloat amidst the ongoing recession including selling its 20 percent shares to the public and combining its local and foreign property-casualty insurance businesses into a single unit.
Last year, Lehman Brothers, one of the biggest financial institutions in the country, came crushing down. This meltdown was also followed by Citi Group, the largest financial conglomerate in the US which provides investment, banking, and insurance.
Because of the worsening financial condition, the Federal government created a program called Troubled Assets Relief Program (TARP) to help the financial and banking sector by purchasing the assets and equities of struggling companies which are on the verge of meltdown.
3 Comments
- Tea Party Time!!! This isn't fair and now they are going to spend how much of our tax dollars for their bonuses? Why not pay the money back to the treasury so that their total "loan" can be reduced? AIG should be allowed to fail. I don't like paying for their parties and fox hunts or their bonuses! What did they do to earn a bonus anyway?
- Let them join the real world. Let them live with a 2% on their life savings which were intended to help offset their medical bills and their life style in retirement years. No one seems to give a hoot about the millions of retired people but just these yoyo's.
- I think they be so tripping. This is not COO, yall. i can't stand 2 thank bout this stuff right now when r economy in the gutta. this is so ignorant. they be wasting all our money. AIG is a buncha crooks! they be stealing everything! 30 billion dollars? what is going on?!?! This crazy tom fooleri would so not go down from where i'm from with my homies in Halem. We be busting those fools. AIG is gonna meet the hood and well tech how it is to roll with the common folk.
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