Sunday, March 01, 2009

AIG Receiving $11 per Share from the Feds

The insurance company, American International Group Inc. (AIG) will be receiving another $30 billion in Federal aid. Based in the 2.69 billion in shares they have outstanding, that works out to $11.15 per share, and the stock only sells for 42 cents per share. This is on top of the $150 billion in loans that they have already received from the government plus the $40 billion from TARP funds.

What is wrong with this picture? Are there union auto workers that work for AIG that need their jobs preserved? Did the United States invent insurance so we cannot walk away from the company?

Why aren't we supporting the insureds instead of the company, guaranteeing that all life insurance policies and annuities will be paid off, and forget about the company that spent almost $500,000 at the St. Regis Monarch Beach Resort in California after receiving bailout funds?

If you think this article sounds a lot like my rant about General Motors (GM) asking for $51 per share from the government, then you are right.

Disclosure: Author owns AIG, what a piece of ...


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