Do you think AIG should have been allowed to fail? Explain your opinion.
No, AIG should not have been allowed to bail out. AIG was paid valuable tax payers money. This should not have been paid. Further, AIG is a huge insurance company and insurance holders are protected by their insurance subs. Also the counter parties of AIG were already rescued by the government. Those persons who had deposited with AIG including money market funds are ...
This solution explained the need for AIG bailout in a structured manner. The answer includes the references used.