Treasury backstop for AIG highlights rating agencies' influence

10/15/2010 | Bloomberg

A plan for the government to exit ownership of American International Group includes a $2 billion Treasury Department backstop because credit rating agencies said the insurer's move to independence might require emergency capital. The rescue of AIG was revised several times, partially to prevent the agencies from downgrading the company's credit rating. The situation highlights influence exerted by rating agencies, according to Bloomberg.

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