When you’re forced to restructure a bailout, which was supposed to be used for restricting, it’s hard to justify even to yourself that throwing good money at a problem is the answer. In terms of AIG, the federal government really needs to take a few steps backwards and figure out how it can unwind that company in a way that makes sense. It’s simple to big, and involved in just too many things.

The Glass Steagall act of 1933 was design for just this reason. The act was created so that companies where mot allowing to get so big, so integrated into the financial market, that when one failed it took along the rest of the market with it.

 Until we start to hear about some fundamental reform changes in the system, all we are doing is hoping that more money will fix the problem.  And when you think that in 2007 AIG had revenue of $ 110.1 billion dollars you start to ask yourself, where did all that money disaparre to. Where is the AIG bank account, that the company used for a rain day. Or did it all wash up in corporate jets and perks.

Troubled insurer AIG posted a $ 61.7 billion fourth-quarter loss forcing the US GOV to step in with more cash, or face the reality that it would be holding the bag on almost 76 million policies worldwide.

“American International Group Inc., once the world’s largest insurer, said Monday it lost $61.7 billion in the fourth quarter, the biggest quarterly loss in U.S. corporate history, amid continued financial market turmoil.”

Breakdown: AIG & the Numbers

·         US government announced a restructuring of a bailout plan

·         Extending $30 billion in additional aid

·         AIG lost $22.95 per share in the last three months of 2008

·         Lost $5.3 billion, or $2.08 per share, in the same quarter a year ago

·         Revenue fell to negative $23.8 billion

·         Full year lost $99.3 billion, or $37.84 per share,

·         Compared with a proft of $6.2 billion, or $2.39 per share, in 2007

·         Total revenue fell 89.9% to $11.1 billion from $110.1 billion a year ago

Read Article: AIG posts $61.7B 4Q loss, bailout is restructured