Watchdog panel criticizes the government over AIG bail-out
The watchdog panel has said that it is still not clear whether the US taxpayers will fully recoup all the 182 billion dollars they have invested to American International Group (AIG) o not. It has also added that the government should have used all other options before calling for the bail-out.
According to the panel members the government could have reacted sooner and more aggressively to go for the rescue of AIG in 2008 by the help of any privately fund.
According to market experts, the bail out could have a very venomous effect this time and may cause an economic crisis. The market believes that the government will give taxpayer's money to stop the big financial institution from collapsing.
The treasure department and the AIG executives have given optimistic assessment of the company but according to the Congressional Budget Office's estimation the taxpayers of US will loose 36 billion dollar which is a huge amount. So now everything lies on AIG whether AIG's other remaining units would be able to generate sufficient new business and shareholder value to repay the appropriate amount to the taxpayer of US.