Will AIG Bounce Back?

Discussion in 'General Business Forum' started by tazoodle, Jul 13, 2009.

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  1. tazoodle

    tazoodle UKBF Newcomer

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    Ailing insurer American International Group (AIG) has been saved from the brink of collapse through a multibillion-dollar rescue package from the US Government.

    The Federal Reserve swooped in to save the world's largest insurer on Tuesday night, offering up to $85 billion over two years in return for an 80% stake in the firm. After bailing out stricken mortgage lenders Fannie Mae and Freddie Mac last week, the Government refused to throw beleaguered Lehman Brothers a lifeline.

    However, as most major banks have dealings with AIG, its collapse would have had devastating consequences on the rest of the financial world. The Fed said that a "disorderly failure" of AIG could "add to already significant levels of financial market fragility and lead to substantially higher borrowing costs, reduced household wealth and materially weaker economic performance.

    Now the question is whether AIG will bounce back after spending steep tax schedule to the US federal reserve
     
    Posted: Jul 13, 2009 By: tazoodle Member since: Jul 13, 2009
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  2. barrysummers

    barrysummers UKBF Newcomer

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    I think they will probably in a paired down mode but there is money in insurance if assessed correctly. so yes
     
    Posted: Jul 13, 2009 By: barrysummers Member since: Jul 13, 2009
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