Posted on 01/23/2011 11:01:54 PM PST by Rabin
AIG will convert outstanding preferred shares purchased by the US Treasury, into common stock. When the transaction is complete the Treasury will own 0.0 preferred shares and approximately 92% of AIG's common shares. "The company (AIG) said Wednesday that it expects Treasury will sell its shares of common stock over time, repaying the debt.
(Excerpt) Read more at money.cnn.com ...
Wall Streets star bankers and traders, regardless of where they work, will still reap paychecks worth millions of dollars.
R.
Awhhh we must’ve given them a backdoor loan so that they could pay off the first loan.
NYSE:AIG gives every appearance to me of being permanently comatose and on some form of hidden life support, much like Nortel in 2001. Who in the real world would ever want to buy AIG stock now and in the forseeable future? Who is propping its stock price up (the Fed?).
I’m willing to issue a security if the government’s willing to buy my debt. I’ll pay it back when it’s more convenient to me as well.
BS headline and horrible article.
Until the gov is able to sell its 92%, and until we know at what price, THEN we will know if the GOVERNMENT was able to recover what they loaned AIG.
Nice to see the article mentioned the amount loaned/used to bailout...ooops, no they missed that HUGE piece of info.
Despite AIGs problems it is still the world’s largest insurance company..... true or not I heard that on the radio
Sounds like something J. Wellington Wimpy would do. He was a character in the “Popeye” comic strip... Here is a quote from Wikipedia:
“His best-known catchphrase started in 1931 as “Cook me up a hamburger. I’ll pay you Thursday.” In 1932, this then became the famous “I’ll gladly pay you Tuesday for a hamburger today”.[5] This phrase is now commonly used to illustrate fiscal irresponsibility.”
Incredible!
With the preferred stock the U.S. is a creditor second in line to only bond holders. With common stock the U.S. will be at least 3rd in line behind preferred stockholders. Is this going to be another Enron? Oh well, I’m sure Geitner knows what’s best for the U.S. /sarc
WASHINGTON The federal government didn't exhaust all its options before it committed tens of billions of taxpayers' dollars to bail out the American International Group during the height of the 2008 financial collapse, according to a new report from a congressional watchdog panel.
The Congressional Oversight Panel, which was created to monitor the spending in the 2008 bank bailout bill known as the Troubled Asset Relief Program, or TARP, detailed in its latest monthly report the government's extraordinary rescue of AIG and its lingering effects on taxpayers and the financial markets. (Excerpt) Read more at news.yahoo.com ...
Top 20 AIG Campaign Contribution recipients:
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REFERENCE The Federal Reserve Bank of New York and the United States Treasury rescued AIG with a taxpayer backstop totaling $180 billion. The US Treasury's $180 billion rescue is "interesting" since ex-COS Rahm Emanuel ran Treasury activities.
Now where did that $180 billion go? "Professor" Ohaha knows nothing about high finance----but Rahm toiled on Wall Street before becoming a (gag) public servant (4 term Congressman, Clinton henchman, Fannie Mae looter).
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HOW DID GANGSTER GOVERNMENT SCAM $180 BILLION? PROBABLY LIKE THIS (the Madoff MO): Creating a labyrinth of interrelated international funds, institutions and financial entities of unparalleled complexity and breadth......with assets and businesses in multiple places offshore that hid government fraud, thievery, money launderering, tax evasion........ all out of sight of taxpayers, the IRS, SEC, FEC and US banking laws. BTW, stolen money is taxable. At least half a dozen people are going to walk away from Public Service living like the Sultan of Brunei......and we can name them all without even breaking a sweat.
ping
Adolf Schicklgruber would be so proud.
GANGSTER GOVERNMENT indeed and the Godfather wants another term,thanks to the MSM he just may do so unless the lazy voter wakes up.
BS, since the truth of how much tax payers and federal printed funds they have stolen has never disclosed, I doubt they are paying any damn thing. Worthless stock probably bought by fed.
and fund ohbamma mamba jamma lenin khomeini’s run in 2012 through a back door
And instead of spending this payback money it will be applied to the National Debt. /s
Who is going to pay for the collapse of the markets, the depression and 20 million people out of work?
Isn’t this the old You scratch my back —I’ll scratch yours thingy? The Federal Govt. gave AIG taxpayer funding/bailout.
And Govt. Judges also scratched their back saying Shariah Law compliant loans are oky doky in America the defeated. Now AIG is merely paying back the mob.
Investors who stuck by the company through the recession will also be rewarded as part of the recapitalization.
AIG plans to issue 75 million "warrants" next week that will allow current shareholders to purchase common stock at price of $45.00, a 23% discount from its Wednesday close of $58.40.
This is SOOOOOOOO MUCH BS. People who held AIG stock that was somewhere North of $1200/share before the crash, watched it plummet to single digits and then endured a 1:20 REVERSE SPLIT are now being "REWARDED" with the ability to BUY more stock at $45/share.
It's still one of the largest insurance companies in the world, after several divestments in some Asian and European operations, it's just behind of Allianz SE (Munich, Germany) and AXA (Paris, France) but still ahead of Aviva plc (London, UK) and Zürich Financial (Zürich, Switzerland).
Due to the mix of life, casualty and property insurance, and annuity services, it may be difficult to determine precisely the largest company in the "insurance" space.
Not really. Right now AIG has just short of 70M preferred shares held by the government, there will be no preferred after issuance and conversion of 75M warrants into common stock. It's much easier to sell common stock (on the public market) than preferred, so it's the usual step of "monetizing" preferred investment. Similar thing was done by Treasury with Citigroup a while ago.
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