AIG, the American insurance giant, hit hard by the crunch crisis, has been nationalized. This landmark decision, quite inconsistent with the American State 's principle to commit public funds in order to rescue private firms, turned out to be a necessary move to avoid serious fallout on the American market.
On September 16, the American Federal Reserve (FED) has granted an 85 billion USD loan to AIG payable over a two year period.
In return for its commitment, the American state gets hold of 80% of the insurer's capital. This nationalization is designed to give the Yankee company, with 74 million insured people over 130 countries, time to sell the necessary assets in order to regain its financial soundness.
Following this nationalization, The General Manager of the American insurer AIG Bob Willumstad has been replaced by the former boss of his competitor Allstate, Edward Liddy. The latter has led Allstate, United states' second insurer, from 1999 to the end of 2006 when he became Chairman of the Board of Directors until the spring of 2008.