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AIG is looking to repurchase a significant amount of its stock from the government, the WSJ...

AIG is looking to repurchase a significant amount of its stock from the government, the WSJ reports, in a move that could reduce the government's 61% stake to below 50% by the autumn but would then bring greater Fed oversight. The Treasury and NY Fed have so far made a profit of $14B on the bailout of AIG, and that could top $18B by the fall.
Comments (10)
  • Priapus
    , contributor
    Comments (38) | Send Message
     
    Interesting interview on CNBC about AIG and how in truth, Sptizers blind ambition for the Governorship of NY made him go after Greenberg, and ultimately led to the downfall of AIG... and perhaps more.
    http://bit.ly/T4hTcw
    2 Aug 2012, 03:36 AM Reply Like
  • TARP
    , contributor
    Comments (31) | Send Message
     
    Any company who relies on one person to succeed is doomed and should not be invested in. Spitzer may have been the straw that broke their back but to put the full blame on him is stretching it a bit. The blame mongers argument is based on the one man theory, be it Greenberg not being their or Spitzer's legal aspirations.
    2 Aug 2012, 06:47 AM Reply Like
  • milessoldier
    , contributor
    Comments (357) | Send Message
     
    AIG shares are selling for half of book value so this buyback will certainly add more value.
    2 Aug 2012, 04:18 AM Reply Like
  • WMARKW
    , contributor
    Comments (10383) | Send Message
     
    Do you think the "Government" will have to pay capital gains tax on their profit in AIG stock? Perhaps they should declare a dividend and disburse $18 billion on a pro-rata basis to all taxpayers based on their taxes paid. I might get a check for a buck and a quarter.
    2 Aug 2012, 04:58 AM Reply Like
  • PeterScriabin
    , contributor
    Comments (208) | Send Message
     
    Oh, come now. With 300m population, and (generously) 200m taxpayers, that's a $90 check, even just on a per-capita basis. If it were done in proportion to recent income or dividend tax payments, you might get well into 3 figures. Better than the BAC dividend, I can tell you.
    2 Aug 2012, 04:02 PM Reply Like
  • WMARKW
    , contributor
    Comments (10383) | Send Message
     
    Peter....look at the time of my post.....I didn't have the brain power to do the math.....I was dead to the world. But....I'll gladly take the 3 figure check.
    2 Aug 2012, 10:57 PM Reply Like
  • Tschurin
    , contributor
    Comments (327) | Send Message
     
    The government made a "profit" on one hand, with its investment in AIG, only if you ignore the massive amounts that the other hand, the Fed, has done trying to prop up the economy. Without the latter spending, its doubtful you would have had the former profit.
    2 Aug 2012, 08:24 AM Reply Like
  • Tony Petroski
    , contributor
    Comments (6373) | Send Message
     
    The "profits" made by the Fed and Treasury through the AIG takeover are amateurish. In Venezuela, the government "nationalizes" an oil company (not sure if they do it for the children, for the poor, for the downtrodden or to spread the wealth around from people who "didn't build that" to people more deserving). In any case, they adjudicate in their courts a "fair" settlement with the owners of the stolen company. Let's say they nationalize a company worth 100 million, pay the owners 6 million in the settlement and later sell the firm to a Russian "oil company" for 60 million. That, as investors say, is a "ten bagger."

     

    If our Fed and Treasury could make even more "profits" perhaps our national debt will soon be paid off.
    2 Aug 2012, 09:30 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (8607) | Send Message
     
    Berkowitz was right after all.
    2 Aug 2012, 10:19 AM Reply Like
  • anonymous investor
    , contributor
    Comments (21) | Send Message
     
    The only reason a profit is recorded on AIG is because the subprime CDOs have been unloaded from AIG onto money markets at higher values, but with the same underlying fundamentals that rendered them worthless in the first place. Personally, I wonder whether the subprime meltdown has changed anything, or if our policymaker/banker cartel is simply reloading the economy for the same kindof manipulation that built the subprime meltdown in the first place. We'll have at least one more meltdown before the fictitious money is flushed from the system, though who can say what the consequences of that will be.
    2 Aug 2012, 01:57 PM Reply Like
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