Government Grants $30 Billion Stimulus Package to AIG
After reporting its $60 billion fourth-quarter loss to the public, the American International Group (AIG) was granted by the federal government with $30 billion stimulus package that will prevent the possible meltdown of the company.
Meanwhile, earlier reports said the insurance company will split itself to protect some business units that have healthy finances.
The American International Group (AIG), one of the biggest insurance companies in the US, will receive $30 billion stimulus package from the government after its fourth quarter revenue loss amounting to $60 billion.
Earlier report said the company is planning to split itself into smaller divisions to protect some businesses units which manage to maintain its finances healthy, a move also adopted by Citi Group few months ago after experiencing massive losses.
According to AIG officials, the insurance firm will adopt new management structures to keep its finances afloat amidst the ongoing recession including selling its 20 percent shares to the public and combining its local and foreign property-casualty insurance businesses into a single unit.
Last year, Lehman Brothers, one of the biggest financial institutions in the country, came crushing down. This meltdown was also followed by Citi Group, the largest financial conglomerate in the US which provides investment, banking, and insurance.
Because of the worsening financial condition, the Federal government created a program called Troubled Assets Relief Program (TARP) to help the financial and banking sector by purchasing the assets and equities of struggling companies which are on the verge of meltdown.
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