Whenever a financial behemoth totters on the brink of bankruptcy, government officials start chanting the mantra, “It's too big to be allowed to fail.” Is that the case with American International Group, collapsing beneath the crushing weight of subprime mortgage loans gone bad? AIG's former top dog, Hank Greenberg, certainly thinks so. But the big question is, will anyone be held accountable for getting AIG into this mess in the first place?
As reported by our own Dave Postal, Mr. Greenberg made the case for helping his old company keep from becoming the latest domino to fall in the subprime debacle while appearing on CNBC's Squawk Box.
He made it clear that it is in the national interest that AIG survive, adding that even if Uncle Sam has to step in directly and offer a bridge loan via the Federal Reserve, that's “not a bailout.”
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