Treasury Sells AIG Shares at Slight Profit

By and Pedro da Costa | May 25, 2011

  • May 25, 2011 at 1:23 pm
    Steven says:
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    Still better than the 89% loss I am at with AIG stock!

  • May 25, 2011 at 1:29 pm
    No Free Lunch says:
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    Last time I checked, leaving out the smoke and mirrors, the U.S. government had essentially given AIG $150-$200 Billion a few years ago. Now, I know that AIG’s rates are sometimes high, but I suspect that AIG has not made a profit of a few hundred billion during this interval.

    Who has paid for that?

  • May 25, 2011 at 1:52 pm
    Just a mom says:
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    they have sold off some parts to pay back some of the government bailout. There were articles posted quite a while ago about it.

  • May 25, 2011 at 1:55 pm
    D says:
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    I’m with Steven. The stock’s a pig.

  • May 25, 2011 at 2:05 pm
    underwriter says:
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    AIG stock has made me a ton of money… sorry you guys have missed out!

  • May 25, 2011 at 2:06 pm
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    No Free Lunch: We all did. AIG and others squeezed a great deal for themselves on our expense.

  • May 25, 2011 at 2:15 pm
    Win One for the Gipper says:
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    This is an initial re-IPO of 300 million shares. There will be further sales as AIG seeks to repay its debt. The shares seem to be extremely overvalued as there was an agreement at $29, but analysts and investment bankers thought the stock much was less than this. Based on trading today, the financial experts seem right.

    Further share sales will only occur when the company could possibly breakeven (in the worst case scenario). With the financial state of the company, I do not think you will see further share sales anytime soon.

    It looks like the US taxpayer has yet again been taken to the cleaners.

  • May 25, 2011 at 4:39 pm
    Larry Dean says:
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    The rescue package ended up being worth $182 billion, and Benmosche has said he expects the government to be out of its AIG position by mid-2012. Treasury raised only $5.8 billion on Tuesday. All told, it needs to raise $47.5 billion to break even on the equity portion of its investment in AIG, which isn’t even close to the $182 billion invested by taxpayers. Is this a bit optimistic, or is the general public being sold a bill of goods … again?

  • May 25, 2011 at 5:18 pm
    John says:
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    Its good to see we all agree that the public has been lied to again. One issue I have not seen is. How can you break even when selling at 0.9% (29-28.72)/28.72above purchase price afte two years when the dollar has decreased in value by over 6% per year for each of those years? Seems to me we lost 5.1% per year!

    Larry Dean, I’m confused about those numbers too.

  • May 26, 2011 at 11:59 am
    wudchuck says:
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    i think what is confusing is the amount of billions vs millions… actually, what is not told in the article persay, is the amount of the sold parts and how much of that was given to payback part of the loan. what also is confusing, is truly how much is the taxpayer getting — NONE! so how much of this will truly help our national debt? now, that would be exciting to see, the gov’t invest it’s so called money to gain money from the market place to get our national debt paid! what would help is, reduce the huge salaries that these congressman get, especially since many get paid for speaking engagements anyways…



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