Plans on track for AIG-Travel Guard headquarters
STEVENS POINT, Wis. (AP) _ The financial turmoil in New York in recent days could have a big impact in Stevens Point.
The American International Group, or AIG, is the world's largest insurer. It acquired Stevens Point-based Travel Guard two years ago and is one of the five biggest employers in the city. Construction of a $20 million headquarters is ongoing.
Now AIG is reported to be struggling to put together the cash needed to stay in business. New York Governor David Paterson says AIG will be allowed to use $20 billion of assets held by its subsidiaries to provide the cash.
In Stevens Point, Mayor Andrew Halverson says he spoke with local AIG representatives Monday and was assured it would be "business as usual" in Stevens Point.
Sep 17, 2008 at 12:08 a.m.
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...and with an $85B loan from you and me, we all just became controlling owners of the place. Could somebody get me some coffee, please?
http://www.nytimes.com/2008/09/17/busine...
Sep 16, 2008 at 12:37 p.m.
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Even in a restructuring the business would stay open. It's likely to be dismantled in the long run, though. That could mean making Travel Guard independent again or combining it with other elements of the business.
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I'm not sure why the Mayor of Stevens Point would be privy to any of the high-level discussions about the future of the business, though. He's probably just being told what the people in that subsidiary or division have been told, which is to keep doing their jobs until further notice.
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