For more than 33 years, I have represented the American International Group, its subsidiaries and its insureds. It is one of the largest and most diversified insurance companies in the world. Most people do not stop to think how important insurance is to every aspect of our lives.
Unfortunately, several years ago, a small unit of AIG took some very risky positions, including insurance on credit-default swaps. To keep the company from collapse, our federal government bailed it out to the tune of approximately $182 billion. This decision, like the decision to bail out Chrysler and General Motors, was roundly criticized.
Recently, The State reported that the government has been repaid $22.7 billion more than the $182 billion bailout. This turned out to be a wise move for the federal government, our nation and indeed the world. We also learned recently that the automobile company bailouts proved to be good investments as well.
General Motors and Chrysler are both doing well, their products have never been better, and AIG, which was forced to change its name due to adverse publicity, recently reverted to its descriptive and respected name, American International Group.
Those who constantly complain about our government and insist it has grown too big certainly have valid points of view. They should, however, bear in mind how much we all benefited from these bailouts.