The Great Debate UK
The federal government's $180 billion effort to prop up American International Group has worked, averting an even bigger financial catastrophe. Now it's time for the Obama administration to oversee the dismantling of the failed insurance giant with all due speed.
A report this week from the Government Accountability Office makes clear that AIG would crumble and likely reignite financial fears around the world without the government's massive support.
And the report says it's "unclear" whether AIG will ever pay back the $121 billion in government assistance that's still coursing through its balance sheet.
The GAO report should provide the administration will all the ammunition it needs to get tough with AIG. The report's conclusions should stiffen the spine of regulators in their dealings with Robert Benmosche, AIG's new $9 million chief executive.
It's time for someone in the Obama administration to read the riot act to Robert Benmosche, American International Group's new $7 million chief executive.
Since getting the job, Benmosche has spent more time at his lavish Croatian villa on the Adriatic coast than at the troubled insurer's corporate offices in New York.