AIG Saved By the Federal Government

It was a heave of relief to hear that AIG had been rescued by the U.S. Goverment in a $85 billion injection of the taxpayer's money. With this deal, the government is the major shareholder of AIG with 79.9 percent stake. This means the government has the right to remove the current AIG's chief executive, Robert Willumstad. The money will be paid in full with proceeds from the sales of some assets owned.

AIG was on the brink of collapse before this two year emergency loan by the Federal Reserve. If it had not been done in briskly, many AIG policy holders may end up losing their hard earned policies and many jobs may be lost as well. What a day unsettlement it had been to many holding policies with the AIG and AIA policies in Singapore.