Posted: Jun 2, 2010 2:24 PM by David Ortiviz, News First 5
Treasury Secretary Timothy Geithner is looking past the collapse of an American International Group deal to sell off a subsidiary, saying the insurance giant has other options for paying back its $182 billion government bailout.
Geithner was speaking to reporters after Prudential PLC, a British company, said it was backing out of a deal to buy American International Assurance. The deal faltered after Prudential shareholders balked at the $35.5 billion price. AIG refused to accept less money.
Private analysts question whether AIG did the right thing in refusing to cut its asking price. Some say they wonder whether the taxpayers will ultimately be repaid.