Press Releases

Bachus, Kanjorski Request GAO Study Impact of AIG Rescue Package on Insurance Market

WASHINGTON, January 30, 2009 -

- As indicated in today's Government Accountability Office (GAO) TARP report entitled "Status of Efforts to Address Transparency and Accountability Issues", House Financial Services Committee Ranking Member Spencer Bachus (R-AL) and Congressman Paul E. Kanjorski (D-PA), the Chairman of the Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises, have requested the GAO conduct a study on the government's rescue of American International Group (AIG) and its impact on the U.S. insurance market.

"In addition to the many ongoing concerns about how federal taxpayer funds are being deployed to alleviate systemic financial risk, there have been troubling reports that market distortions may be occurring in the commercial property casualty market as a result of the actions by the U.S. Treasury and the Federal Reserve Bank to provide loans and other financial support to shore up AIG's capital position," the letter states.

Ranking Member Bachus and Subcommittee Chairman Kanjorski also direct the GAO evaluate any progress in achieving the government's goals of the rescue package for AIG and to analyze potential setbacks to recouping taxpayer funds.

Click here  to see Ranking Member Bachus and Subcommittee Chairman Kanjorski's letter.


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