Economist Article
American International Group or more commonly known as AIG insurance company was the topic of a sundry of different headlines across media during the financial crisis. It required a $182 billion bail-out and its future was in a haze. Four years later, it has gone back to the private sector and has become a "leaner, simpler business." The fact that AIG is still around is remarkable, it has gone through a transformation via selling many of its prized units such as Alico and AIA to finance its recovery. What will be interesting is what will become of AIG in the upcoming future. It has been restructured and sources say it is ready to grow again and become a dominant insurance player. However, many financial analysts are still confused about some sections of their finances. So, as we move on, I wonder how far AIG will come along or if consumers will have the confidence to go through AIG again. Of course, after Hurricane Sandy, the demand of insurance slightly increased and with insurance prices rising in America, AIG may have a good opportunity to capitalize. So did our government did the right thing to bail out AIG??? $182 billion is a pretty huge risk, would we consider doing it again if AIG or similar large corporations were to go down again?
No comments:
Post a Comment