Last Updated Sep 21, 2009 12:29 PM EDT What happens when you look at embattled insurer American International Group through rose-colored glasses? Your enemies become "frenemies." U.S. Rep. Edolphus Towns (NY) said through an aide that he may talk with the U.S. Treasury Department to modify the $182 billion bailout package that AIG received last year when the trillion-dollar company nearly fell apart after the collapse of its financial products unit.House Oversight and Government Reform Committee and therefore privy to the inner workings of AIG, his opinions (if he's changed his mind) just might carry some weight. Will it amount to $182 billion worth of weight? That remains to be seen. Towns told Bloomberg News he came to the decision after a September 17 meeting with former AIG CEO Hank Greenberg, who was ousted in 2005 but still holds 12 percent of AIG's shares. Greenberg has been a longtime vocal opponent of the $182 billion deal that AIG made with the government, claiming it gave … [Read more...] about Are AIG’s Enemies Becoming Frenemies?
Aig stock price
Last Updated Sep 23, 2009 2:50 PM EDT The rise in American International Group shares since August is a mystery to every rational investor. Even the General Accounting Office, points out that while AIG now has survivability, its long-term ability to pay back what's owed on its $182 billion bailout package remains in doubt. And as everyone knows, Uncle Sam leads the list for payback. The quick ascent in AIG's stock price is like that car crash movie, "Too Fast, Too Furious." Despite a few speed bumps, it has quadrupled from its $13 price back in August, reaching $55 at one point. It is now trading at $47. But today's Wall Street Journal provides an answer to the enigma. AIG is "a playground for speculators," who are manipulating the float, the shares actually available for trading, to their advantage. The same can be said for those other crippled giants, Fannie Mae and Freddie Mac. "Traders have obtained large benefits speculating on these firms," says the WSJ, citing hedge funds who … [Read more...] about Buyer Beware! WSJ Says AIG Run Up Due to ‘Speculators’
Last Updated Jan 4, 2010 12:59 PM EST Keeping track of American International Group's strategy for paying back the $60 billion it owes taxpayers is akin to playing "Wack-a-Mole." Every so often a mole rears its head, but by the time anyone sees it, the mole has ducked back into the hole. To encapsulate: when AIG got into trouble in September of 2008, former Allstate CEO Ed Liddy became CEO of AIG with a mandate to sell off the pieces of AIG's once trillion-dollar puzzle and pay back the money lent by the federal government. Then Liddy changed his tune and said it would take three to five years to sell off everything. Liddy packed up and high-tailed it out in mid-2009, as did Paula Reynolds, the former CEO of Safeco, who had been in charge of divestitures at AIG. Last summer former MetLife CEO Robert Benmosche walked through the revolving AIG CEO door and halted what he described as "the fire sale of the century," indicating in recent interviews that while he might sell a few things, … [Read more...] about Does AIG Have a Divestiture Strategy?
(CBS/AP) WASHINGTON - The U.S. government has launched an offering to sell $4.5 billion of American International Group (AIG) common stock. The Treasury Department announced the fourth round of AIG stock sales Friday. AIG said it intends to purchase up to $3 billion of the stock being offered in this sale. Treasury's announcement came a day after AIG reported its net income rose 27 percent in the second quarter as its property and casualty and life insurance businesses brought in more revenue. The U.S. government stepped in with $182 billion to rescue New York-based AIG from collapse in September 2008. The company announced in June that it reduced its total government-authorized debt by more than $152 billion. AIG still owes taxpayers $30 billion on the initial investment. The U.S. Treasury still owns about 60 percent of the company's common stock. The government has made a profit on the shares it has sold. AIG repays $53B in bailout loansTreasury prices $5B sale of AIG stockFed sells … [Read more...] about Treasury to sell $4.5B of its AIG stock
The U.S. Supreme Court today turned down an appeal by Maurice "Hank" Greenberg, the former head of AIG, that accused the federal government of illegally bailing out the insurer at the height of the 2008 financial crisis. The suit against the Federal Reserve Bank of New York was filed in 2011 by Starr International, which is run by Greenberg and which was AIG's largest shareholder at the time of the bailout. It claimed the New York Fed engaged in several transactions that hurt AIG and its shareholders after it took control of the company, allegedly causing the insurer to breach its fiduciary duty to shareholders. The Second U.S. Circuit Court of Appeals ruled in January that the Delaware law didn't apply to the New York Fed because of the "uniquely federal interests at stake in stabilizing the national economy" at the time. In appealing its case to the High Court Starr, said the lower court rulings gave the government sweeping power to trump "ordinary rules of corporate and financial … [Read more...] about Supreme Court rejects suit by AIG ex-CEO