Another day but not just another bailout. This one’s a stunning government takeover.
In the most far-reaching intervention into the private sector ever for the Federal Reserve, the government stepped in Tuesday to rescue American International Group Inc. with an $85 billion injection of taxpayer money. Under the deal, the government will get a 79.9 percent stake in one of the world’s largest insurers and the right to remove senior management.
AIG has one Mississippi subsidiary, Jackson-based Audubon Insurance Group.
State Insurance Commissioner Mike Chaney said the government’s intervention into AIG’s problems should help further stabilize what he said is an already healthy, solvent Audubon, which he said functions largely as a holding company.
Magnolia Tribune
