If aig goes bankrupt what happens to retirement funds?
Retirement funds such as a qualified plan – 401(k) are not held on a company’s balance sheet. Qualified Plan assets are in separate accounts and have nothing to do with the poorly run business such as AIG. http://www.investopedia.com/university/r… The US Gov owns 79.9% of AIG and I don’t think…. we’ll, I wouldn’t think they are dumb enough to dump $150 billion in AIG and counting to allow it to go under, even though the company is technically insolvent. Pension Benefit Guaranty Corporation (PBGC) http://www.pbgc.gov/workers-retirees/ben… They guarantee assets if the company goes under, but not the value of your investment holdings. If you own AIG stock, and a BK is filed, the stock will eventually trade go to zero. The stock is worthless already.
