Are Hank Greenberg and I the only ones chagrined about Uncle Sam actually owning AIG as part of its bailout package to keep the country's biggest insurance conglomerate afloat? Was it necessary to demand a nearly 80 percent equity interest in the troubled company in return for the Fed's $85 billion line of credit, and could the terms of the deal end up hurting AIG–and taxpayers–in the long run?
The deal is done, and there is no doubt such a deal had to be made–or else the consequences for the U.S. and even the global economy could have been catastrophic.
Still, while AIG required liquidity–the ability to put its hands on lots of cash in a hurry–to stave off a bankruptcy filing, might the strings attached trip up AIG's recovery over the long term?
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