For the second time this month, Uncle Sam has had to step in and take over a publicly-held company in an effort to shore up the economy. The government yesterday took control of one of the world's largest insurers, the American International Group. The $85 billion deal comes just days after mortgage giants Freddie Mac and Fannie Mae were bailed out. Yet earlier this week, the Feds let Lehman Brothers Holdings go under instead of providing it financial support. But the possible effect of an AIG collapse to the already sinking markets made the government re-think their refusal to help more failing companies. As part of the AIG deal, Treasury Secretary Henry Paulson demanded the resignation of CEO Robert Willumstad. He is replaced by Edward Liddy, a familiar name to those in the Chicago Area.
Eight Forty-EightBusiness Contributor David Greising is with us now to tell us more about the new leader of AIG.
Music Button: The Apples, “Natri Ba Makom”, from the CD Attention!, (Audio Montage)