In today's Wall Street Journal, Evan Greenberg, the chairman of ACE Insurance and current head of the AIA, agrees with me that the insurance industry doesn't need and shouldn't take the money being dangled in front of life insurance companies by the federal government.
His thinking closely mirrors mine, and I hope others in the insurance industry, that the devils deal being offered healthy life insurance companies by the government, in hopes that it will be used to buy up weak players is a potential disaster for the companies and their shareholders. Evan Greenberg should know given his years of experience and his personal front row seat as the son of Hank Greenberg, the former AIG chairman who has had to watch the destruction of the company he spent his entire career building.
Further on this topic, the NY Times yesterday reported that AIG has gone through $90 billion of the governmet provided funds and did one of the best break downs of how it has been spent and allocated and for what purpose. If you haven't read it I strongly suggest you click this link to read the NY Times story on AIG and it's use of the government bailout money.
The bottom line is that the AIG story is still unfolding but it is strongly suspected in the insurance industry and capital markets now that people are starting to dig on this, that the bail out of AIG was specifically crafted to protect the counter signatories of it's debt guarantees vs saving the company from insolvency. Just who these yet to be named protected parties are is the big mystery and I suspect we won't have those names until long after the election has passed.
I think we are going to find out at some point that the AIG deal, and now the insurance funding deals being dangled in front of otherwise healthy insurance companies, are part of a larger plan to protect "friends of someone" who would have been otherwise wiped out. I hate to sound like a black helicopter conspiracy type of guy, but the fact that we are well over a month into the AIG deal, they get more money by the day and the government is trying to bride other life companies into using tax payer money to buy life markets that someone is being protected here.
The question remains, who is it, because I can tell you one thing for sure it's not the life insurance policy holder or the US taxpayer.