|AIG Still Showing No Sign of Responsibility, and More Help May Be Needed.
||[Dec. 12th, 2008|11:00 pm]
Well, it's not a surprise that AIG is behaving poorly in wake of 150 billion dollars of TARP relief. Instead of operating sensible rates, AIG is cutting their prices to the rock bottom, which could cause a price war that obliterates even more financial institutions.
Read this troubling piece, from the article:
It is also possible the U.S. government, as AIG's majority owner, would feel obliged to step in with more financial support for the insurance subsidiaries if underwriting losses became a problem.
About $15 billion of a $60 billion government loan to AIG had already been consumed by its insurance units as of November 5, according to the company's latest quarterly filing. The commercial insurance division has not received any federal funding, according to Doyle.
"One way or another, I don't see how it is avoidable: The amount that the government will ultimately apply to AIG will exceed the amount that it has provided so far," said Donn Vickrey, an analyst with research firm Gradient Analytics.
What's this nonsense I hear about plans needed for viability in order to receive taxpayer support?
IF YOU GIVE TO ONE, YOU MUST GIVE TO ALL, OR SUFFER ALL. THERE IS NO CHOICE.