Greenberg Calls for Bridge Loan, AIG’s Downfall Would Be A Loss to America

Former chief executive officer of American International Group (AIG), Maurice (Hank) R. Greenberg, said this morning in an interview with CNBC that an immediate injection of cash in the form of a bridge loan is needed to avoid bankruptcy of the giant insurer.     
    
"If they don't get a bridge loan either from the private sector or the Fed or there's a sudden appearance of wealth funds willing into invest, and if the rating agencies don't given them breathing space, there's no alternative. And that would be a disaster," Mr. Greenberg said in an interview with CNBC.    
    
With a short-term loan in place, the company could survive, but if funding is not secured and the company goes under, "that would be a loss to America," said the former AIG chief executive officer, who resigned from the New York-based insurer more than three years ago.    
    
A collapse of AIG, which he called "a national treasure," would have long-term consequences, Mr. Greenberg added. "It'll be years before that is sorted out." It is "so much more simple" to solve this problem with bridge loan to provide the company with liquidity. Such a loan should not be labeled a "bailout," he said.

Published on September 16, 2008