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What are the implications of AIG (AIG) chief Robert Benmosche's pledge to repay the government...

What are the implications of AIG (AIG) chief Robert Benmosche's pledge to repay the government every last penny (that's $182.5B) and turn profitable? Well, in Q2 AIG turned a profit of $1.82B. So if it can keep that going for another 25 years, and turns every penny over to Uncle Sam ... Anyone holding their breath?
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Comments (8)
  • Tom Au, CFA
    , contributor
    Comments (6796) | Send Message
    AIG took leveraged bets many times its normalized profitability, and lost.
    21 Aug 2009, 03:43 PM Reply Like
  • PJSacchetta
    , contributor
    Comments (8) | Send Message
    I do believe in miracles. It would take an incredibly huge miracle to allow AIG to repay the government in full. Since the government owns most of AIG, this repayment schedule is not as important as the company being brought back to health so that the government can unload the stock in some kind of offering.
    21 Aug 2009, 03:49 PM Reply Like
  • Squirespeaks
    , contributor
    Comment (1) | Send Message
    Great point, curious why everyone ignores such basic fundamentals.
    21 Aug 2009, 03:51 PM Reply Like
  • enigmaman
    , contributor
    Comments (2703) | Send Message
    and yet the stock continues to climb as if it owes the Fed government nothing, when you look at how some speculative stocks have moved the past week it seems like things are back to normal and that would be good news for anybody that thinks this is a bear market rally topping out.
    21 Aug 2009, 03:56 PM Reply Like
  • Robespierre
    , contributor
    Comments (221) | Send Message
    I for one have absolute confidence in his ability to achieve such a feat. Moreover, I venture to say that if one where to propose to him to work without pay until that is accomplished he will gladly do so because he is such an honest guy that he would never lie! So how about it Mr. Benmosche will you put your money where your mouth is?
    21 Aug 2009, 03:59 PM Reply Like
  • Teutonic Knight
    , contributor
    Comments (3077) | Send Message
    Mr. Benmosche's annual compensation is $7M and that is about $5K an hour (of work I suppose). This rate of pay would take an average Joe (like myself) something like 70 to 80 years of gainful employment to make up to (assuming that there would not no interruption in between such as layoffs, etc.)


    I think judging by his ludicrous remark I would have to say that he probably deserves his pay scale as a story teller, a medicine man, fact bending manipulator, and above all, a liar without blushing.


    Long Live the Crooks, and their Master Crooks!
    21 Aug 2009, 04:00 PM Reply Like
  • montanamark
    , contributor
    Comments (1452) | Send Message
    remember, obama promised 95% of americans would get a tax cut, that unemployment would be capped @ 8% (if the 1000+ page) spending bill was immediately passed and he beat hillary clinton by promising to pull out of iraq the day he was elected. we live in an age where words mean nothing. the AIG guy can say or promise anything w/o consequence. its change you can believe in.
    21 Aug 2009, 04:51 PM Reply Like
  • Anwar Bhamla
    , contributor
    Comments (98) | Send Message
    The extrapolation does not make sense.As anyone knows, you can raise cash in many ways:


    Asset sales, Stock sales and internally generated earnings.


    As a taxpaying owner of AIG, I wish him great success. I bet he will pull it off.
    21 Aug 2009, 04:55 PM Reply Like
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