15 Jul AIG Sell-off: More Transparency, Please
Public interest journalism blog ProPublica interviewed R&R’s Sylvain Raynes regarding reports that AIG has sold off dozens of subsidiaries in order to repay the $85 billion it owes American taxpayers. “There’s nothing wrong with private transactions between consenting adults,” Raynes said, “But when the government is involved, everything changes.” Raynes noted that the lack of transparency made it hard for the public to gauge whether AIG is getting the prices it needs to repay the bailout. “I’m sure they’re not getting a good deal,” he said. “If you buy from someone who’s desperate, what do you think? That’s probably why they’re not talking about it.”
Read the full article, “Details of Some AIG Sales Kept From Public,” by Sharon Coutts, ProPublica, July 15, 2009.