Under the Microscope: AIG’s Second Chance

AIG says it will repay, in full, the $182 billion it was lent by the American taxpayer BUT it has a long way to go to rebuild its reputation…and the new financial world that they have created is a pretty uncertain place!

“I would not call [the bailout] a success,” says Wharton insurance professor Kent Smetters, “but the alternative is always hard to assess.” Even though the taxpayer may eventually not lose in this case, Smetters worries that the AIG bailout and other post-crisis government actions “have likely worsened the [too] big-to-fail problem”

via Under the Microscope: AIG’s Second Chance – Knowledge@Wharton.