AIG CEO Benmosche Says Taxpayers Will Profit on Bailout

March 26, 2012

AIG expects American taxpayers to end up with a profit of $5 billion to $10 billion on the company’s 2008 rescue when all is said and done, the chief executive of the bailed-out insurer said on Monday.

The U.S. government saved American International Group from bankruptcy in September 2008 with a bailout that ultimately totaled $182 billion. Earlier this month, the company finished paying off the government‘s preferred interest in some of its assets.

In an interview on CNBC, Bob Benmosche said the company now has an “awful lot of capacity” to buy back stock and that he assumes most of those buybacks will come from the U.S. Treasury’s 70 percent stake in the company.

Treasury has been steadily reducing its position in the insurer, whose shares have recently recovered to trade above the government’s $28.73 break-even point.

Benmosche also told CNBC’s Jim Cramer his cancer treatments were going well and that he was in no hurry to retire. At one time he had been expected to retire this summer, though in recent months he has indicated a desire to stay on indefinitely.

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Latest Comments

  • March 28, 2012 at 2:41 am
    Hans says:
    Benmosche did a great job. It was all but obvious to pay back without killing the group's core businesses, he managed it against all odds. And the remaining activities are str... read more
  • March 27, 2012 at 4:13 pm
    Baxtor says:
    Also this article totally skips over what a previous article stated that the IRS gave AIG billions of dollars in tax breaks last year. So I don't see where the US taxpayer wil... read more
  • March 27, 2012 at 2:18 pm
    Agent says:
    Only $78 Billion to go. Most adults will not see this paid back before they die.
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