WASHINGTON - THE US Senate Banking Committee has scheduled a hearing on March 5 to examine government aid to insurer American International Group Inc, a source familiar with the hearing said on Wednesday.
Federal Reserve Board Vice Chairman Donald Kohn is among several regulators scheduled to testify at the hearing to examine 'what went wrong, government intervention and implications for future regulation,' the source said.
Scott Polakoff, acting director of the Office of Thrift Supervision, and Eric Dinallo, superintendent of the New York State Insurance Department, also are slated to testify, the source said.
AIG was first rescued in September after bad mortgage bets left it on the verge of collapse. So far the US government has provided US$150 billion (S$230 billion) in Federal aid to the insurance company.
AIG is one of several companies the US government rescued during tumultuous months for US financial institutions.
As AIG braces for a fourth-quarter loss that a source familiar with the matter said could be about US$60 billion, it may come back for its third round of government help. Such a loss would be the biggest in corporate history.
The company has said it plans to sell all assets except its US property and casualty business, foreign general insurance, and an ownership interest in some foreign life operations, as it looks to raise money to pay back the government.
According to people close to the matter on Wednesday, three potential bidders are still looking at buying a large stake in AIG's key Asian life insurance unit.
Canadian insurer Manulife and Singapore sovereign wealth fund Temasek Holdings are considering offers for the unit, the sources said, although no formal bids have been submitted.
UK insurer Prudential Plc is mulling whether to bid, a source said.
Whether to provide an optional federal charter for insurance firms - similar to the duel banking charter system - is being considered by US policymakers. -REUTERS