folks, most of AIG is healthy....it holds $19 trillion of life insurance policies in the US

[amborin]

don't have time to find cites now

but research it yourself

it's only the London office that screwed up with credit default swaps and CDOs......

most of AIG is okay and healthy......

plus----it simply cannot be allowed to fail.....


it is the issuer of a HUGE % of all the life insurance policies held in the US

there is NO OTHER guarantor that can take over, and neither can the US gov't


here:

"....The reason the federal government just rescued American International Group for the fourth time in six months with taxpayer money has a lot to do with a terrifying potential consequence of letting A.I.G. fail: the possibility of a run on on the insurance industry.

It’s a little-discussed but highly unnerving aspect of the crisis at A.I.G., Andrew Ross Sorkin writes in his latest DealBook column.

In the United States, A.I.G. has more than 375 million policies with a face value of $19 trillion. And if policyholders lost faith in A.I.G. and rushed to cash in their policies all at once, the entire insurance industry could falter, he says....

the dangers lurking below A.I.G.’s seemingly stable, highly regulated life insurance business. In the United States, A.I.G. has more than 375 million policies with a face value of $19 trillion.

<snip>

"If policyholders lost faith in A.I.G. and rushed to cash in their policies all at once, the entire insurance industry could falter.

“A ‘run on the bank’ in the life and retirement business would have sweeping impacts across the economy in the U.S.,” according to the A.I.G. document. “In countries around the world with higher savings rates than in the U.S., the failure of insurance companies would be a catastrophe....”


<http://dealbook.blogs.nytimes.com/2009/03/03/the-case-for-saving-aig-by-aig/?scp=24&sq=aig%20life%20insurance&st=cse>



here's part:

"