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View Diary: UPDATE - U.S. Made $22.7 Billion Profit As Last AIG Stock Sold (45 comments)

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  •  Or, now I get your comment, yeah, the (0+ / 0-)

    "something" that we're missing (with "we" being the US taxpayer) is the gap between $182 billion and $22.7 billion!

    •  I believe we took an $182B equity stake and (2+ / 0-)
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      TomP, bear83

      because we did it gave the company value and made it a good investment(full faith and credit).  It is now at a point we can sell the stock and make $22.7B in profit on the sale of the stock.  Someone correct me if that is not what happened.  I think it is rich that the CEO did anything to make that happen.  The government stepped in and made them worth investing in.  The insurance business was never the problem.  They divested themselves of the gambling casino in London and the rest of the business,old line insurance was fine.  The government stepped in order to make international investors(which included Goldman) whole.

      •  I don't know what that means (0+ / 0-)

        are you saying that "taking an equity stake" didn't require the outlay of any "real" money?

        Again, from the linked article:

        The revised bailout included a $60 billion credit line from the Federal Reserve Bank of New York, a Treasury investment of as much as $69.8 billion and up to $52.5 billion from the Fed to buy mortgage-linked assets once owned or backed by AIG.
        It sounds like except for the $60 billion credit line, the rest of the bailout still required "real" money . .. .
        •  Credit line indicates a loan which has to be paid (0+ / 0-)

          back, the second indicates we got an equity stake, we got stock and we purchased what were probably overvalued mortgage linked assets(we probably got taken on these) as we probably paid full value.  

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