Could AIG Wreck the Global Economy?
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American Insurance Group, the world's biggest insurance company, is getting history's biggest bailout. But where are almost $200 billion in taxpayer dollars ending up? The Federal Reserve told a senate committee today that going public could destroy AIG, putting at risk the world's financial system. We update the hearing and get the background. Also, “substantial doubt” about GM's ability to survive, and new ties with Russia and mixed signals about Iran as Hillary Clinton meets NATO leaders in Brussels.
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'Substantial Doubt' about GM’s 'ability to continue' ()
General Motors has borrowed $13.4 billion in taxpayer dollars and is asking for billions more. Today, in its annual report, it said there's “substantial doubt about our ability to continue as a going concern.” Daniel Howes is a columnist for the Detroit News.
- Daniel Howes: Business Columnist, Detroit News
AIG, a Bottomless Pit for Bailout Money? ()
American International Group, the world's largest insurance company, got $150 billion in federal bailout money in the last quarter of 2008 and still lost $62 billion. The Obama administration has promised AIG $30 billion more. Today an angry Senate Finance Committee threatened not to go along, unless it finds out where that federal money is going. But the Federal Reserve said revealing AIG's creditors would destroy the company, which is so big it could take the world's financial system along with it. How did it get that way? Where has all that taxpayer money been going? Is there an option to pouring in billions more?
- Michael Crittenden: Reporter, Dow Jones Newswires
- Mark Williams: former Bank Regulator and Examiner, Federal Reserve Bank
- Felix Salmon: Financial blogger at Conde Nast’s Portfolio.com, @felixsalmon
- Peter Cohan: President, Peter S. Cohan and Associates
- Dean Starkman: Managing Editor, The Audit
Clinton Reaches Out to Russia, Iran at NATO Meeting ()
Secretary of State Hillary Rodham Clinton announced today she wants a high-level meeting on Afghanistan by the end of this month, convened by UN Secretary General Ban Ki-moon and including her counterpart from Iran. Today's announcement came during a meeting of NATO in Brussels. Tony Barber is Brussels Bureau Chief for the Financial Times.
- Tony Barber: Brussels Bureau Chief, Financial Times
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