6:03 PM Wed, Sep 17, 2008 | Permalink
Steve Peoples  Email
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PROVIDENCE -- General Treasurer Frank T. Caprio and the governor's budget office confirmed this afternoon that the troubled insurance giant American International Corporation has agreed to give back roughly $138 million of state agency dollars that had been locked in investment accounts.
Earlier in the day, Caprio suggested that he was nearly sure that Rhode Island would get its money back following the federal bailout plan formally announced today.
But at around 5:30 p.m., Caprio's office said the state received a written notice from AIG informing them the funds would be wired back in the coming days. Caprio and other state leaders will decide tomorrow specifically where to invest those funds, which are needed for major construction projects such as the "IWay."
State budget officer Rosemary Booth Gallogly noted the return of the state's money was a positive development and the result of continued conversations with AIG.
"We successfully worked all day yesterday to get this money released," she said.
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Imagine that tiny dose of corporate responsibility...put this in the history textbooks
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It is state money the feds would have to reimburse anyway. Might as well give it up ahead of time.
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