After narrowly escaping catastrophe during the financial implosion that began last fall, American International Group — otherwise known as AIG — is leveling out, according to a cautiously optimistic new report from Congress’ Government Accountability Office. –KA

The New York Times:

The research arm of Congress reported on Monday that the American International Group’s financial condition had stabilized but said it was not clear whether the giant insurance group would ever be able to restructure and repay its federal rescue package.

[…] The G.A.O. said the huge bailout had succeeded in braking A.I.G.’s fall by the first half of this year, and was producing signs of improvement among A.I.G.’s individual insurance companies. Although the crisis at A.I.G. was touched off by exotic derivatives, other activities, such as a risky securities-lending program, harmed its insurance business, too.

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#aig#american international group#bailout#congress#derivatives#government accountability office#insurance