Projo Biz Blog

PROVIDENCE -- General Treasurer Frank Caprio confirmed today that at least one other government agency has millions of dollars locked in investment accounts with the troubled insurance giant American International Group.

Rhode Island Housing Corporation has about $7 million in an AIG account, Caprio said, adding that the agency is in the process of moving the money to a "guaranteed investment contract" with another company.

The Journal reported today that state agencies have a combined $131 million tied up in AIG investment accounts. That total grew to $138 million with today's disclosure. The total may grow as officials continue to collect information from agencies and even municipalities across the state.

But Caprio said that the federal takeover reported last night of AIG virtually guarantees that Rhode Island will be able to access its money.

"On a scale of 1 to 10, yesterday we were probably somewhere around a 4 or 5 as far as what will be the future of AIG and how would we be able to access the resources in let's say an orderly fashion," Caprio said. "Now I would say we're 9.9. I wouldn't say 10 because in today's world you can't say with certainty that something's going to happen."

AIG is now "backstopped by the full faith of the United States Treasury," Caprio said. "That's as strong as you can get in today's world."

- Steve Peoples, of the The Journal State House Bureau

 Tags  AIG Frank Caprio Rhode Island Housing Corporation United States Treasury

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