I have a 403 B plan with AIG valic co. If AIG fails , does that mean that all the investors lose their retirement ? HUH . Is the govt doing anything to help us? Somebody pl let me know if it is wise to take out the investment from the company at this time and pay a penalty of 10% at the end of the year.

It appears to be an illogical conclusion by our brain trusts in Washington, DC, to allow AIG to fall into Bankruptcy.

A $50 Billion bailout using Government funds or back by the US Government sees to be a much better option than to force AIG into Bankruptcy which will then trigger all kinds of financial fall out over the entire globe.

The people who will gain from a bankruptcy will primarily be the attornies and trustees in bankruptcy who will "Try to administer AIG" but since AIG is so vast an entity, all that will happen is a depletion of assets to fund a group of attorney's looking for another meal ticket that will last ten years.

If AIG files bankruptcy, the holders of their debt have to write down the assets. Then they get a tax deduction for the write off and that impacts the US Treasury by lower tax revenues.

Write offs by other insurers, banks, holders of various Insurance products issued by AIG who is unable to meet its obligations also cause tax losses and decreased tax revenues from these other tax payers.

If the US Economy is going to be burdened by losses from decreased tax revenues, why is it not prudent to make guarantees to Morgan Stanley or other groups willing to provide the back up loans to AIG, with the hope that eventually no funds are coming out of the US Treasury since the guarantees, if AIG can pull itself together, will never be called upon for funding. This back up guarantee or even direct loans do not diminish current tax revenues or have only a minimal impact on the current tax collections.

Is it better to let a major organization work, with added scrutiny of various regulatory agencies, and survive or do the current adminstration officials simply throw up their hands and let it to the next administration?

I have an idea..lets review the salaries of the exec of AIG/Merrill Lynch/Bear Stearns/FannieMay and Freddie Mac...Maybe in these troubled times we need to cut out the Fat...I think the numbers here are crazy!!

Screw AIG. Wipe this pig out. This insurer is a bad faith insurer you can and should look this term up if you are not familiar with bad faith. You need to sell all your stock while you can. Get another insurer cancel your policy quickly. You are at risk as a policy holder don't be fooled. Sell Sell Sell your stock.

Why should us poor taxed to death usa citizens have to bail out these STUPID PEOPLE THAT CAN"T OPERATE A HUGH BUSINESS such as the ones now that have FAILED or on verge of failing,citizens are hurting read bad elected officials I though you people were voted into office to do what the tax payers,citizens of the usa voted you there to do,what happen????

gerald must not be too bright. Look at your potential up side v downside. Its really to late to sell. ANJANA YOUR RETIREMENT ACCOUNT IS SAFE, there is an FDIC Like entity that insures retirement account & sewcurities. I believe part of your commissions pay for it.

I was told that as AIG is the holding company for VALIC, that my retirement funds would be safe. That AIG can't take money from insurance companies like VALIC to pay their losses. That if necessary AIG can sell VALIC to another holding company. Is this right?

Boo, hoo, hoo. In good times corporate America tells government to stay off their backs and let the free market reign. Then when they make stupid, very high risks decisions they cry to the gov. to bail them out. Its happened so many times in the past corporations just assume they can continue this pattern ad nauseum. As Mike said earlier at the very minimum the corporate officers and board of directors need to be required to do something along the lines of paying back all their bonuses and most of their salaries for the last 5 years.