AIG: Too Immoral to Survive

Sunday, April 19, 2009

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Last fall, when the Troubled Assest Recovery Program (TARP) started, it was said American International Group (AIG) was “too big to be to fail,” a fundamentally incorrect assumption applied to the government’s policy of bailing out a poorly managed company so intertwined with other companies that its failure will result in cascading effect of more business failures.

But, what if a company is too immoral to survive?

From the Los Angeles Times:

Civilian contractors have played indispensable roles in both the Iraq and Afghanistan conflicts, delivering fuel to frontline troops, guarding U.S. diplomats and translating for soldiers during dangerous raids. To date, more than 1,400 civilian workers have died working in Iraq and Afghanistan and 31,000 have been wounded or injured in the two war zones.

Civilian workers who suffered devastating injuries while supporting the U.S. war effort in Iraq and Afghanistan have come home to a grinding battle for basic medical care, artificial limbs, psychological counseling and other services.

Yet unlike wounded soldiers, who are offered healthcare, rehabilitation and support services by the military, the civilians have to battle a Federally supervised insurance system marked by high costs and excessive delays, an investigation by the Los Angeles Times and ProPublica has found.

The insurance companies responsible for their treatment under taxpayer-funded policies have routinely denied the most serious medical claims. Those insurers — primarily American International Group (AIG), recorded hundreds of millions of dollars in profits on this business.

This entry was posted in AIG, Bailout, News and tagged , , , . Bookmark the permalink.

4 Responses to AIG: Too Immoral to Survive

  1. Joe in Colorado says:

    Only in America can you have a company bailed out by the taxpayers and then the same company turns around and refuses to do what it is supposed to do which is pay claims to the injured and the families of those killed in service their country.

  2. Stephan Iversonn says:

    What’s unfortunate is, access to the TARP trough wasn’t made contingent upon social responsibility.

    Had this been written into the TARP language, AIG wouldn’t be able to deny claims to injured claim holders.

    But alas, this is what happens when pro-business, Republicans are allowed to roam free without any constraints.

  3. The bottle is filled, the wick shoved in….and now we wait for the match to be lit. That is what this feels like. When do we say enough?

  4. Conejo1982 says:

    Too big to fail?

    Total bullshit.

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