The insurer American International Group (A.I.G.) is seeking more government (i.e., taxpayers) money.
They are now claiming that they are out of money.
According to the New York Times:
Among the plans being discussed include swapping some or all of the $40 billion in preferred shares held by the government into a form of capital A.I.G. can use to ward off collateral calls from its trading partners. The government has already lent A.I.G. $150 billion.
A.I.G. is already effectively majority-owned by the federal government.
From FoxNews.com:
American International Group Inc. is seeking an overhaul of its $150 billion government bailout package that would substantially reduce the insurer's financial burden, while further exposing U.S. taxpayers to its fortunes, people familiar with the matter say.
Under the plan, the government loan of up to $60 billion at the heart of the bailout would be repaid with a combination of debt, equity, cash and operating businesses, such as stakes in AIG's lucrative Asian life-insurance arms. AIG and the government have been discussing the changes since December and plan to announce them by Monday when the insurer is expected to report fourth-quarter results, the people said.
The earnings report is expected to underscore AIG's worsening condition with its total loss for the quarter likely to top $60 billion, these people said.
This time the government should "just say no" to AIG.
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