The welfare mama is back. Pay back the $450 million in bonuses paid out to 400 people and then talk. The first subject to be discussed should then be capping payouts as Senator McCaskill has proposed. Take it or leave it. If the tables were turned, you know this is what AIG and Wall Street would do. They've kicked sand in the face of Americans too many times to play along with their games so now is the time for some tough love, provided AIG wants to stay in business.
American International Group the insurer rescued from collapse by the government in September, is in discussions with Washington about a federal backstop for some of its assets, The Wall Street Journal reported Saturday.
AIG is also considering selling units through public offerings, the newspaper reported, citing an interview with AIG Vice Chairman Paula Reynolds.
"We're looking at a broader array of recapitalization options," Reynolds said.
"We both realize that the environment's changing and we have to adjust to that environment," she said, referring to the federal government.
Backstopping the insurer's assets would be similar to guarantees the government provided for assets belonging to Citigroup and Bank of America, the Journal reported.
