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Should AIG and other large companies be broken up?

Written By: Government Grants on August 3, 2009 No Comment

Should AIG and other large companies be broken up?

In late 2008, it was announced the insurance conglomerate, AIG was in huge financial distress. High-ranking government and federal reserve officials, such as Paulson and Bernanke said, in effect, the government (i.e. the tax payers) should prevent its colossal collapse by lending it what now amounts to over $100 billion, and by other means of support that were granted.

Should this kind of fiasco be prevented before it ever starts, by breaking up companies that are “too huge to fail?” That way, they can be allowed to fail – like Lehman Brothers was. Please answer and comment.
Keep in mind that corporate break-ups are not “Communist” moves. Teddy Roosevelt, a Republican, broke up large companies at the turn of the twentieth century, in order to PRESERVE Capitalism – in case you didn’t know.

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