Also see: AIG Asks For More Taxpayer Loot
"AIG says it won't be giving unit to US" by Bloomberg News | February 27, 2009
NEW YORK - American International Group, the insurer in talks to restructure its $150 billion bailout with the US government, plans to keep a division that sells property and casualty coverage to businesses....
This after the bank wouldn't restructure your loan. 'm sorry, readers, but the despair becomes overwhelming sometimes.
You know US government = TAXPAYER DOLLARS in this case, right?
David Monfried, a spokesman for the insurer:
"Turning over the great property-casualty franchise of AIG to the US is not one of the options being considered."
AIG was weighing a plan to hand over the business to the United States to help pay down some of its debt to the government, a person familiar with the matter said yesterday. AIG told the government the division was losing employees and struggling to attract clients, the person said.
Yeah, US TAXPAYERS aren't going to get ANYTHING GOOD out of this "bailout" or whatever you want to call it. I call it a looting.
The bailout may be restructured to include a government backstop protecting AIG against further losses on credit-default swaps, a person familiar with the matter said. AIG is preparing to disclose a record fourth-quarter loss, the person said.
Oh my God, NOW the TAXPAYER is going to have to PAY OFF BANKS and COVER AIG's LOSSES in those HORRIBLE, HORRIBLE, SWAP DEALS?!!!!
The property-casualty division was at the core of chief executive Edward Liddy's strategy to revive AIG and woo private investors following the government's initial $85 billion bailout in September. That plan stalled amid deepening losses on subprime investments and Liddy's difficulty finding buyers for other units.
Liddy is scrambling to stem the tide of defections after hurricanes and price competition handed the US property and casualty industry its worst nine-month results since 2001, according to Insurance Services Office Inc.
He needn't worry; it's TAXPAYERS to the RESCUE AGAIN!!!
Also see: Taxpayer Bailouts Never End
Brokers, which help corporate clients shop for coverage, have been presenting insurance buyers with more options when policies came up for renewal. Aon Corp., the biggest broker, said in October that it started selling additional coverage to protect against insurer default. Number two Marsh & McLennan Cos. said last month that most buyers are seeking to spread their risks to more carriers. At Travelers Cos., now the biggest US insurer by market value, customers are renewing contracts at a record rate, chief executive Jay Fishman said.
Because they KNOW the GOVERNMENT will COVER ALL LOSSES -- if you are an INSURANCE COMPANY or BANK!!!!
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