The AIG Effect: AIG Asset Sales Yet To Repay Much Debt; Hopes High on SPV AgreementSeptember 8, 2009 – In The News
The new new chief executive officer of American International Group Inc. promises to be patient as the company looks to reimburse about $182.5 billion the U.S. government has pledged in support. Some say AIG will never repay the government, and ultimately the taxpayer, the loans and other aid extended to them.
"AIG is such a central part of the financial system, they can keep the money as long as they want to and I don't think the government cares," said Joseph Pastore. "They (AIG) were a counter-party to so many transactions. If you let let them go down, it's not just them, it's, 'Oops, we lost an economy.'"
Not only is AIG unlikely to pay back the government, but Ernest Badway said AIG "may need more money to continue."