ÌìÃÀÍøÕ¾´«Ã½´«Ã½

Midwestern reaction to a proposed bail out of insurance giant American International Group (ÌìÃÀÍøÕ¾´«Ã½´«Ã½) has been varied.

In Chicago Mayor Richard Daley is not happy about the Federal Reserve Bank’s decision to provide an $85 million bailout of ÌìÃÀÍøÕ¾´«Ã½´«Ã½. Daley says the money would be better spent on education.

Daley said he feels sorry for the people of the United States. He said the nation doesn’t have enough money for education, but it has enough money to fix every problem on Wall Street.

Officials say the failure of ÌìÃÀÍøÕ¾´«Ã½´«Ã½ would further disrupt markets and threaten the already fragile economy.

ÌìÃÀÍøÕ¾´«Ã½´«Ã½ said it will repay the money in full with proceeds from the sales of some of its assets.

On September 18 the former head of Northbrook, Ill.-based Allstate Insurance Company Edward Liddy took over the helm of ÌìÃÀÍøÕ¾´«Ã½´«Ã½ as its new CEO.

“My intention is not to liquidate the company,” said Liddy, speaking with employees. He also said ÌìÃÀÍøÕ¾´«Ã½´«Ã½’s insurance operations were well-funded, and that the company’s “mess is solvable.”

Ohio, North and South Dakota

Insurance regulators in other Midwest states delivered a more positive message.

State regulators say Ohio consumers with ÌìÃÀÍøÕ¾´«Ã½´«Ã½ insurance have no reason to fear, despite concerns about the company. Ohio insurance regulator Mary Jo Hudson said ÌìÃÀÍøÕ¾´«Ã½´«Ã½’s insurance units are solvent and able to pay claims. Hudson said on Sept. 17 that the agency is monitoring the situation closely.

In South Dakota the head of the insurance division says the government bailout of insurer ÌìÃÀÍøÕ¾´«Ã½´«Ã½ will have little impact in that state. Insurance Director Merle Scheiber says none of the 42 ÌìÃÀÍøÕ¾´«Ã½´«Ã½ insurance companies licensed in South Dakota face “imminent financial problems.”

North Dakota’s insurance commissioner said the ÌìÃÀÍøÕ¾´«Ã½´«Ã½ insurance companies that do business in that state are running normally. Adam Hamm says the ÌìÃÀÍøÕ¾´«Ã½´«Ã½ holding company has 20 property and casualty insurers licensed to do business in North Dakota, and 11 life and health insurance companies.

Hamm says the ÌìÃÀÍøÕ¾´«Ã½´«Ã½ companies collected $66.8 million in premiums last year. He says the ÌìÃÀÍøÕ¾´«Ã½´«Ã½ companies in North Dakota are in business and paying claims.

Information from: Chicago Tribune, ; AP

Topics Ohio ÌìÃÀÍøÕ¾´«Ã½´«Ã½