So, AIG got its bailout from Uncle Sam. What happens now? Assets will be sold to repay the federal loan, but can enough cash be generated over the next 24 months to get the job done, during what in effect will be a fire sale? And will AIG be able to reassure nervous risk managers whose commercial insurance policies with the carrier are up for renewal on Jan. 1?

Meanwhile, will key players within the company stay put, or seek lifeboats provided by headhunters?

These and other huge questions linger as the smoke clears from this week's frantic efforts to stave off bankruptcy at the country's biggest insurance player.

At least AIG will not have a single person serving as chairman and CEO for much longer, as reports indicate Ed Liddy, the former CEO for Allstate Corp., will soon take over AIGs day-to-day operations as its new CEO.

That means current CEO Robert Willumstad, who doubles as AIGs chairman, will relinquish the CEO role–a very positive development for those like me who firmly believe in separation of the two functions. The chair should be watching what the CEO does. If they are one and the same person, who is minding the store for shareholders?

Still, this crisis is far from over. In fact, we've just witnessed the first chapter in what promises to be a long, drawn-out process to not only get AIG back on its feet, but the entire U.S. economy along with it.

One point I can't get over is how easily unelected regulators can put taxpayers on the hook for tens of billions, while getting Congress to approve a few more million to cover kids without health insurance gets bogged down in partisan politics. Congress passes earmarks for bridges to nowhere, then shirks its responsibilities to its neediest citizens.

Yet, what is the alternative? Had the federal government stood back and let the invisible hand of the free market prevail, where would we be today? AIG would have no doubt filed for bankruptcy, sending shock waves through an already faltering economy, and further undermining the financial viability of every citizen with a 401k.

Whatever happened to the Ownership Society and culture of personal responsibility touted by Republican leaders? It seems that for corporate entities in big enough trouble, socialism–not capitalism–ultimately rules the day. The rest of us are on our own. Good luck!

Bottom line, the Fed did what it had to do. But that doesn't mean we have to applaud. There should be greater accountability to make sure nothing like this happens again.

What do you folks think?

Special Reports /

AIG Is Saved! Now What?

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