17
Sep
2008
Fed’s 80% stake for a $85 billion loan to AIG
The shining white knight finally appears. And it is Federal Reserve.
American International Group, Inc. (AIG), is the World’s leading international insurance organization with operations in more than 130 countries and jurisdictions. If something like this were to file for bankruptcy, it would have meant trouble, and a possible market crash seems imminent.
I had thought AIG would give up their air-craft subsidiary for cash. For a moment, I was happy that AIG is saved. But on second thoughts, I really would have prefered that they could have saved themselves by giving up whatever subsidiary that could get them out of the shit. Well, it could have been a smaller loan figure instead, which translates to a smaller stake given away.
Nevertheless, I suspect that damage has already been done. People worldwide has their confidence crashed in AIG. Will you buy another insurance policy from AIG? You’ll consider? That’s good news for AIG. Oh, you’ll never buy from them again? Trust me, you are not alone. For me, I’ll relook at my insurance & investment portfolio. Seriously, my stand is still Service, if the agent from AIG is good, I will still buy from them again.
I had 99% of my insurance policies with in AIG. I was such a loyal customer of AIG. This is really a good lesson learnt, so AIG, please wake up and do some good to your customers!
News on Fed helping AIG is here:-
http://www.iht.com/articles/2008/09/17/business/17insure.php
