AIG untanglement more difficult: Geithner
Treasury Secretary Timothy Geithner foresees a lengthy involvement with American International Group and is not ruling out more aid to the insurance conglomerate.
By Agencies |
WASHINGTON: Treasury Secretary Timothy Geithner foresees a lengthy involvement with American International Group and is not ruling out more aid to the insurance conglomerate.
Testifying before the Senate Banking committee, Geithner said Wednesday that untangling AIG's finances has proven to be more difficult than originally envisioned.
The government holds about 80 percent of AIG's assets and has injected $70 billion into the company from the $700 billion Troubled Asset Relief Program.
Senators criticized the government for letting AIG pay off its top creditors the full value of their debt. Geithner said the government lacked the authority to negotiate a reduction. Said Banking Committee Chairman Christopher Dodd, D-Conn.: "There should be a better answer to this."
Testifying before the Senate Banking committee, Geithner said Wednesday that untangling AIG's finances has proven to be more difficult than originally envisioned.
The government holds about 80 percent of AIG's assets and has injected $70 billion into the company from the $700 billion Troubled Asset Relief Program.
Senators criticized the government for letting AIG pay off its top creditors the full value of their debt. Geithner said the government lacked the authority to negotiate a reduction. Said Banking Committee Chairman Christopher Dodd, D-Conn.: "There should be a better answer to this."
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
