Who ever thought that the government $182.3 billion bailout of American International Group (AIG) would ever be repaid much less make money to boot?* Yet, to date, the Treasury and Federal Reserve have collected $197.4 billion from AIG for a $15.1 billion profit. This sum includes the Treasury sale of 637 million shares of AIG common stock for a total of $20.7 billion on August 14, 2012! All the stock sold above the breakeven point of $28.73/sh with the deal struck at $35.50/sh. The Treasury still owns 15.9% of the common stock in the company which, when sold, will be pure profit added to the current total. The hero of this occurrence is Robert H. Benmosche, former head of MetLife, who took over AIG in August of 2009. Is he Businessman Of The Year or what?
The AIG bailout was part of the Troubled Asset Relief Program (TARP) initiated by President George W. Bush and continued by President Obama. It appears that the larger TARP program may eventually make an overall profit as well.**
*http://online.barrons.com/article/SB50001424053111904819604577647570064908412.html?mod=BOL_qtoverview_barlatest;
** http://www.thedailybeast.com/articles/2012/08/10/how-the-treasury-is-turning-a-profit-on-tarp.html
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