AIG Was Bailed Out  Because They Insured Congressional Pensions-Fiction!

AIG Was Bailed Out  Because They Insured Congressional Pensions-Fiction!

Summary of eRumor:

A forwarded email that says that American International Group Inc. (AIG), got a congressional bailout  because congressional and federal pensions were insured by them.
 

The Truth:

A spokesperson for American International Group Inc (AIG), the largest insurance company in the United States, told truthorfiction.com that this is a hoax.   The truth is that AIG was bailed out because they are federally insured and close to $85 billion was “brokered by the Federal Reserve with the backing of the Treasury Department.”

Also, Congressional and federal worker pensions trust funds are not covered by AIG.

The troubled insurance company had been reporting losses in 2008 which resulted in federal intervention to prevent the institution from bankruptcy.  

Fox Business reported on March 2, 2009 that AIG is expected to receive an additional “$30 billion from the government as part of a restructured bailout.”

updated 03/11/09

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