US government to cut AIG stake to below half of bailed-out insurer’s stock in $18 billion sale
Basically the taxpayers will end up getting out of AIG with a profit.
Important parts for me:
The U.S. government is selling more of its shares in insurer American International Group Inc., in a move that should decrease its holdings below a majority stake for the first time since the $182 billion bailout in 2008.
If there is more demand, the government will grant the underwriters a 30-day option to buy up to $2.7 billion more of its stake in the company.
AIG said it will buy back $5 billion worth. The price is not yet determined.
AIG, which is based in New York, nearly collapsed in 2008. It received $182 billion from the U.S. government — the biggest of the Wall Street bailout packages — after suffering massive losses from investments in derivatives.
The company has sold off several different units in order to raise money to pay off its debt to the government.
The insurer has been profitable the last two years and is expected to post a net profit of $7.4 billion in the year through this December. CEO Robert Benmosche said last month the company was close to its goal of repaying the government everything it provided to AIG during the financial crisis “plus a profit.”
Plus a profit. Just like Chrysler many years ago? Don't now if it will be that big a profit, but it's a profit.
Now we just need to get rid of GM shares at a profit and we'll be in pretty good shape. Maybe allowing US Taxpayer to purchase some of those shares with their refunds might be nice. Cut out the middle man (brokerage house) and get some more value to the middle class.