Skip to main content

Federal Financial Assistance: Preliminary Observations on Assistance Provided to AIG

GAO-09-490T Published: Mar 18, 2009. Publicly Released: Mar 18, 2009.
Jump To:
Skip to Highlights


The Board of Governors of the Federal Reserve System (Federal Reserve) and the Department of the Treasury (Treasury) have made available over $182 billion in assistance to American International Group (AIG) to prevent its failure. However, questions have been raised about the goals of the assistance and how it is being monitored. Also, because AIG is generally known for its insurance operations, questions exist about the effect of the assistance on certain insurance markets. This statement provides preliminary findings on (1) the goals and monitoring of federal assistance to AIG and challenges to AIG's repayment of the assistance; and (2) the potential effects of the federal assistance on the U.S. commercial property/casualty insurance market. GAO's work on these issues is ongoing. To date, we have reviewed relevant documents on the assistance and ongoing operations of AIG, as well as documents issued by the Federal Reserve and Treasury. We also interviewed officials from these organizations as well as industry participants (competitors, brokers, and customers) and insurance regulators, among others.

Full Report

Office of Public Affairs


AssetsFederal aid programsFederal fundsFederal propertyFederal regulationsFederal reserve banksFinancial managementFinancial markets regulationInsuranceInsurance companiesInsurance premiumsInsurance regulationInvestigations by federal agenciesPrices and pricingRisk managementStocks (securities)Funds management