Posts tagged Financial crisis

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It may or may not have been necessary, but let’s see if they pay the money back like Bank of America. It is hard to say what they will do.

Forex: Fed’s Rosengren: AIG Bailout Kept Financial Crisis From Worsening

(RTTNews) – Boston Federal Reserve President Eric Rosengren said Thursday that it was necessary to bail out AIG because last year’s financial crisis would have been “severely exacerbated” if the company had been allowed to fail.

Speaking at the Massachusetts Newspaper Publishers Association’s annual meeting, Rosengren said that AIG was a “systemically important and risky” firm and was a major insurer against credit losses on securities, including those backed by subprime mortgages.  …more

Grassley wants update on AIG’s repayment of taxpayers’ billions

On the heels of the New York Federal Reserve obtaining shares of two American International Group subsidiaries, one U.S. senator wants a clearer picture of how the troubled insurer plan to repay taxpayers.

Sen. Chuck Grassley (R-Iowa) sent a letter to U.S. Treasury Secretary Timothy Geithner and William Dudley, president and CEO of the N.Y. Fed, regarding the nearly $180 billion AIG received in bailout funds over the past year.   …more

Related AIG Articles

• Fed reduces AIG’s debt by $25 billion (money.cnn.com)
• Sanders Attempts to Hold Up Bernanke Renomination (blogs.wsj.com)
• A.I.G. in Debt-for-Equity Swap With New York Fed (nytimes.com)