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NEW YORK (CNNMoney) -- The U.S. government will make a $15.1 billion profit from the bailout of insurer AIG, according to a congressional watchdog panel's report.
The Government Accountability Office said Monday that the size of the profit will be determined by the long-term health of American International Group (AIG, Fortune 500), the timing of the Treasury's sale in the stock and AIG's share price
Treasury's exposure to AIG, which received government aid beginning in 2008, has been reduced sharply from the more than $180 billion committed to the bailout. In the latest sale of AIG stock, the Treasury said Monday that it was going to sell about $5 billion worth of common stock, reducing the remaining investment to $30.7 billion.
LOL if you believe this. It is funny how you guys didn't believe anything that came from the Bush administration, but take the same group's press releases for fact when then numbers are fudged.
LOL if you believe this. It is funny how you guys didn't believe anything that came from the Bush administration, but take the same group's press releases for fact when then numbers are fudged.
Please feel free to provide some links refuting the OP.
I'm open to read something from other than The Blaze or Faux.
LOL if you believe this. It is funny how you guys didn't believe anything that came from the Bush administration, but take the same group's press releases for fact when then numbers are fudged.
AIG was bailed out and nationalized by Bush. Like I said I did not like the idea back then, but it seems to have worked out in the end.
Since the profits come through sale of stock, obviously the only thing which made profit possible was the rise in the stock market.
Yeah, if you ignore the fact that they paid the government back with money borrowed from the Fed.
Actually, the government owns AIG stocks and they are selling them. It is little differnet from 'paying back with borrowed money'.
Remember, Bush didn't just give them money, he nationalized them.
Quote:
Treasury's exposure to AIG, which received government aid beginning in 2008, has been reduced sharply from the more than $180 billion committed to the bailout. In the latest sale of AIG stock, the Treasury said Monday that it was going to sell about $5 billion worth of common stock, reducing the remaining investment to $30.7 billion.
What if a friend came to you claiming he needed $5000 or he and his family would be out on the street and you later found out he went to the casino with it?
same thing here, we are taxed by the fedguv to fund certain services and that money should not be used to gamble.
Actually, the government owns AIG stocks and they are selling them. It is little differnet from 'paying back with borrowed money'.
You have to have a seriously myopic view to consider the U.S.'s investments into AIG "profitable." The return generated by the U.S. treasury only exists because the Fed loaned AIG (and the financial system at large) trillions of dollars at unreasonably low interest rates.
So yes, if you pretend that there is no Federal Reserve bank, then you can consider this a "success."
I wouldn't hold your breath as they still owe 30 billion according to the "numbers". Of course last time the fed's numbers were audited we found out that 16 trillion was handed off to Europe during all these bailout sessions so who really knows what the true numbers are..........probably nobody.
Then there is this..
"The GAO said that AIG was showing signs in 2011 that the company was becoming "stable and profitable," with net income of $18.5 billion for the year, bolstered by income tax benefits and divested businesses."
Income tax benefits.......or "loopholes" that some like to call em......helping them out so that's more tax dollars being handed to em basically.
The Government Accountability Office said Monday that the size of the profit will be determined by the long-term health of American International Group (AIG, Fortune 500), the timing of the Treasury's sale in the stock and AIG's share price.
Uhhhhhhhh.....that's like saying we'll have an awesome day at the beach today as long as the sun shines and it doesn't thunderstorm on us. Can I control the thunderstorms? No. Can the government control the stock price of AIG? No.
Since when does an "if/then statement" garner the absolute of "will happen?"
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