The U.S. Government Accountability Office (GAO) is keeping tabs on American International Group Inc. and the assistance the Department of the Treasury provided under the Troubled Asset Relief Program and the Board of Governors of the Federal Reserve System.
Since March 2008, the Federal Reserve and Treasury have made more than $182 billion available to assist AIG. And, as of Dec. 31, 2009, the outstanding balance of the assistance provided to AIG was $129.1 billion, about $8.4 billion more than the balance on Sept. 2, 2009, according to a recent GAO report.
Since the GAO’s last report in September 2009, AIG's financial condition has remained relatively stable, as measured by several indicators, largely due to the assistance. The federal assistance also appears to be facilitating a more orderly restructuring of the company, according to the GAO.
The report also indicates that insurance operations are showing signs of recovery, but federal assistance has been a critical factor.
“For the first time since the second quarter of 2008, additions to AIG life and retirement policyholder contract deposits have exceeded withdrawals,” the report states. “AIG's property/casualty companies also have shown some improvements. AIG is continuing to repay its debt to the federal government, but much of the progress reflects the numerous exchanges of debt that AIG owed the Federal Reserve Bank of New York Revolving Credit Facility (facility) with various issues of preferred equity.”
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