Like many people I am watching the current economic crisis unfold with some trepidation as to what it will mean.
As one interested in the insurance industry I noted this the other day on the demise of AIG.
In an article on what appears to be an ever increasing funding need, The Economist asks whether AIG has taken Uncle Sam for one of the most expensive rides in corporate history.
Given that the insurance funds are ring fenced just what persuaded the Fed and US Treasury to rescue AIG?
Did they understand the implications?
Will we ever know why they bailed AIG out and not Lehman Brothers?
With 20/20 hindsight would bailing Lehman out have been such a bad thing?