Bailout of AIG

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Sept. 17, 2008

Tom Baker
Professor of Law
University of Pennsylvania

• Researches and teaches insurance law and policy, insurance and society, law and economics, sociology of risk.

“The traditional insurance business at AIG appears to be in good shape, but there’s a competitive insurance market out there, with lots of insurance companies looking for business right now. If I were a risk manager looking to buy insurance right now, I’d be worried about AIG, especially for my visible lines of insurance like Directors and Officers Liability Insurance. So, AIG is going to be facing a tough insurance market. The smart thing to do for AIG is to sell off those good insurance businesses.”