Flooding costs from Hurricane Irene to be covered in part by taxpayer dollars

As Hurricane Irene bowled through the east coast, it left behind a path of destruction caused by its high winds and rains, with initial estimates for the damage ranging from $2 to $7 billion. That said, much of the bill for rebuilding will be covered by taxpayer dollars. The reason for this additional cost to taxpayers is that the majority of home and business owners in the Northeast don’t have coverage for flooding caused by hurricanes, and the federal insurance program is already facing a debt worth billions of dollars.…

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AIG makes a $2.15 billion dent in its bailout repayments

American International Group Inc. (AIG) has made a payment of $2.15 billion to the U.S. Treasury Department as a partial repayment of the total $182 billion it was provided through the 2008 financial crisis bailout package. The repayment funds were drawn from the proceeds that the company made from the company’s sale of its Taiwan subsidiary called Nan Shan Life Insurance Company Shan to Ruen Chen Investment Holding Co. Nan Shan has been available for sale from AIG since the middle of 2009, when the government of Taiwan halted its…

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Government looking for buyers

Several major businesses floundered in the wake of the global economic recession. Unable to recover in the early days of the economic downturn, many of these companies were allowed to fail. In the U.S., some of these companies received federal aid in the form of massive cash injections. The American International Group, an American insurance corporation, was one such company. AIG, however, mishandled the funds in one way or another, leading the government to seize the company. Now, The U.S. Treasury Department is selling shares of the company in the…

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Commercial insurance prices no longer being decreased by AIG

Chartis is the property and casualty division of American International Group, Inc. (AIG).  They stopped cutting commercial-insurance rates.  Brokers say they are unable to raise prices in some markets because the insurer doesn’t have as much power as they use to. When FactSet surveyed the company, AIG made $2.57 cents a share in 2008.  Since then it has decreased to just 98 cents a share.  The insurer will report AIG’s second-quarter results to the analysts and investors. The government has bailed out AIG, which made customers and investors worry that…

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