Sept. 17, 2008
"Disappointed that taxpayers are called upon to bailout another one. Certainly AIG though with the construction bonds that they're holding and with the insurance that they are holding very, very impactful to Americans so you know the shot that has been called by the Feds it's understandable but very, very disappointing that taxpayers are called upon for another one."
Palin, responding to her first impromptu question from reporters when asked about the federal bailout of American International Group. During a subsequent interview on Fox, Palin twice repeated this statement about AIG's construction bonds, even though AIG failed because of its vast portfolio of Credit Default Swaps. The Wall Street Journal later reported that AIG is only the 14th largest issuer of surety bonds on construction.