Travelers and Chubb Quit Playing With AIG

Seen on the newswires:

Insurers Travelers Cos Inc and Chubb Corp will no longer issue surety bonds with American International Group Inc as a co-participant, according to insurance brokerage Marsh Inc.

Surety contracts guarantee the performance of a specific obligation, and are often required for contractors working on public projects.

"This only affects future bonds," said Mark Nickel, head of surety for Marsh Inc, a unit of Marsh & McLennan Cos Inc.

Hmmm… since AIG is now majority-owned by the United States, images of federal regulation or legislation prohibiting such decisions dance through the head.