AIG Needs to Repay $120.7B to Government

September 22, 2009

(ChattahBox)–The Government Accountability Office released an official report on Monday, detailing the status of insurance giant AIG, after receiving the largest bailout under the 700-billion-dollar Troubled Asset Relief Program. The report states that AIG owes the federal government nearly 121 billion dollars.

The report cites progress being made by AIG in its ability to repay the federal bailout monies. Although, the report also noted that AIG’s success depends on market conditions and continued government support, which exposes the Federal government to risk.

“While these efforts are being made, the government remains exposed to risks, including credit risk and investment risk, which could result in the Federal Reserve and Treasury not being repaid in full,” the GAO report said.

AIG was on the brink of collapse last fall, after investing trillions of dollars in risky financial products that succumbed to the sub-prime mortgage crisis. The insurance giant was deemed too big to fail and was propped up with billions in federal bailout funds.

The Government Accountability Office, is an investigative arm of Congress and will continue to monitor the status of AIG “to determine the likelihood of AIG repaying the government’s assistance in full and the government recouping its investment.”

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    […] the pace of economic growth and continued confidence that they have inflation under control. AIG Needs to Repay $120.7B to Government – chattahbox.com 09/22/2009 (ChattahBox)–The Government Accountability Office released an […]

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