Question Of The Day: More Help For AIG?

By Thomas Nagorski

Mar 16, 2009 6:26pm

"Too big to fail." The phrase has become part of the lexicon, heard almost daily to describe a giant company whose demise would — according to those who employ the phrase — cause such profound damage as to make failure untenable. The insurance behemoth AIG is perhaps most often described this way — and indeed there are few economists who dispute that AIG’s failure would cause colossal collateral damage to the global economy. Still, today’s news about those bonuses ($165 million paid to officers of AIG’s most problematic division) raises our two questions of the day: 1) When AIG next requests federal help — as it is expected to do — will it get that help? 2) Should it get that help?

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