Think Tank Questions Revised AIG Bailout
Washington, D.C.,
March 2, 2009—Early this morning, federal regulators and AIG officials
announced revised terms for the bailout of the now-government-controlled insurance
giants. The terms ease AIG’s obligations in repaying the federal government and
give the government direct control – and cash flow rights – to a number of
AIG’s important assets.
“It is becoming less and less
credible by the day that AIG’s problems were only at the holding company level,”
said CEI Senior Fellow Eli Lehrer. “This bailout proves that the idea that AIG
only experienced a momentary liquidity crisis is simply wrong. It’s quite
possible that we would have done better never to have pumped taxpayer money
into the company in the first place.”
Lehrer says that AIG’s collapse
provides a good reason why the country should explore a plan of national
regulatory modernization. “Massive companies like AIG simply can’t be overseen
effectively at the state level. We need someone, somewhere, who can see a full
picture of their finances and, more importantly, provide them with the
flexibility to sell the insurance products that customers want and do so on the
basis of risk.”
Insurance Experts Available for
Interviews
Eli Lehrer
Senior Fellow
202-331-2283
Michelle Minton
Policy Analyst
202-331-2251
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