AIG and bailout implications

[PRETZEL]

With all the great discussion going on here concerning the bailout got me to thinking and quite frankly I really don't know how relevant and how much it adds to the discussion but I am interested to see how others feel about this.

From all that I've heard about the size of AIG and all the various insurance products that they offer what effect would damage caused by Katrina, Ike et al. have on their capital and ability to operate? This question obviously applies to all insurance, re-insurerance, PMI and other products that those who have lost a great deal in those castrophies?

Also, business (especially the oil industry) would obviously be insured to the max for both capital equipment and operations.

I guess basically my question is "Is there a component of the bailout that is indirectly being used to allow companies like AIG to have the capital necessary to pay out for the claims that have been and are now being made?"

[burythehatchet]

1. AIG's insurance operations are not involved

in fact, the insurance subsidiaries are regulated and constrained n how much liability they can incur. The problems are at the non-regulated entities. That having been said, many commercial customers are in fact trying to replace AIG in their insurance programs.

[PRETZEL]

2. Thanks,

should have realized that.