Well this will never be reported by the I hate Obama/Geithner crowd...AIG plans to repay in full with new shareholder money! That is right...plans to repay in full...with interest and profits for the Treasury!!!
http://finance.yahoo.com/...
American International Group Inc. said Wednesday it is moving forward with its plan to distribute 75 million warrants to allow current shareholders to buy AIG stock at a discounted price, part of the insurance giant's plan to repay taxpayer aid and free itself from U.S. government ownership.
What does this mean, former shareholders paid for the bailout and new shareholders are paying it back with their investment in AIG...Talk about great news...all the Doom and Gloomers in Kossackland were saying that this portion of the bailout was as good as throwing money down the drain...a few mea-culpas would be in order now...
This is quickly turning into the lowest cost and perhaps the only no cost bailout of the global financial system in the history of the world!!!
For some time, the government expected AIG's bailout to result in massive losses, but Treasury now expects to book a multibillion profit from the investments.
So in fairness to the Doom and Gloomers even the government is surprised how their dog of an investment is turning up roses now!!!
In addition to the recapitalization, AIG has been repaying the aid with proceeds of multiple asset sales. Earlier Thursday it said it agreed to sell its 97.6 percent stake in Nan Shan Life Insurance Co., Taiwan's third-biggest insurer, to a local business group for $2.2 billion. Last year the company sold a cornerstone of its business, Asia-based life insurer AIA Group, in a government-approved $35.5 billion deal to British insurer Prudential PLC. It also sold American Life Insurance Co., or Alico, to MetLife Inc.
So in the end, AIG paid with a substantial sale of the gems of their company and their shareholders equity and the taxpayers are made whole as we saved the global financial system from a complete collapse...how about that for a winning strategy...
I all honesty I thought we would lose a modest amount in the deal which was worth it (like $10 Billion)...so making a profit for taxpayers is like a dream for me...
Where is the ticker tape parade for Obama/Geithner now???