US’s Geithner says taxpayers face risk of AIG losses

WASHINGTON, Feb 4 (BestGrowthStock) – U.S. Treasury Secretary
Timothy Geithner on Thursday repeated his view that taxpayers
still faced a risk of loss from its $70 billion investment in
insurer American International Group, but the Treasury’s
estimate remains remains higher the $9 billion loss estimated
by the Congressional Budget Office.

“Our (loss) estimates are significantly higher than the
CBO’s,” Geithner told the U.S. Senate Budget Committee. “They
are a fraction of what those estimates were six, nine, 12
months ago.”

The Obama administration’s 2011 budget proposal assumes a
$30 billion “subsidy cost” or loss, from the investments in
AIG. The $70 billion Treasury investment, when combined with
Federal Reserve loans, brought the total amount of the AIG
bailout to $180 billion.

Stock Market Today

(Reporting by David Lawder; Editing by Theodore d’Afflisio)

US’s Geithner says taxpayers face risk of AIG losses