AIG to Exceed Bailout Credit Line

This is an interesting article about the current status of the AIG bailout loans, and what they do with their money from the government.

American International Group Inc. has 90.3 billion U.S. dollars from a U.S. government credit line, since they bailed last month, an amount which exceeds the size of the original loan is meant to save the insurer.

AIG May need more than the 122.8 billion U.S. dollars from now to the New York-based insurer, Chief Executive Edward Liddy said. The company, based on the 16th September at over majority control to the United States in exchange for a $ 85-billion-dollar loan obtained access to an additional 37.8 billion U.S. dollars this month.

AIG's latest balance was revealed Thursday from the New York Federal Reserve, and is up from 82.9 billion U.S. dollars a week ago.

"This underscores the uncertainty for all try to create a series of" on the AIG cash needs, said Bill Bergman, an analyst at Morningstar Inc. in Chicago. The Financial Products unit, that most of the company losses "is a big black hole." Read the whole article.

The interesting part comes later in the article, if the current CEO calls it sell its U.S. life insurance company, among other assets.