chrisbax

AIG: Details of Its Punishing Bailout

no, the equity stake does not get canceled if the loan is paid back. The ceo stated as much, that after the loan was paid back the govt would convert thier shares at that time, diluting the company..but not ending the company

This Is Not "the Big One"

another case of poor reporting

MS has not been aquired, bailed out, nor gone bankrupt as you state

Do your homework buddy

Is AIG a Buy Following the Government Bailout?

actually sir, the 85 billion they got is not the value of the company, that is how much they needed to survive (preventing financial chais) so saying the 20% left over is worth 20% of 85 billion would be wrong. The loan amount does not matter..the govt took the maximum ammount of ownership they could by law 79.99%

AIG has a tough road ahead with owing 85 billion at an astounding 11%

I dont think there will be any profit for a long long time..not to mention they have to sell assets at depressed levels (albeit not as depressed as if they went into BK) but still the market place is not great. They will have to sell A TON to pay off 85 billion, and most likely they will not be able to do it, leaving the govt. to own the most profitable portion of the business, the insurance part..