American International Group Inc. (AIG)’s rescue has come to an end with the U.S. raising $7.6 billion in its final offering of the insurer’s shares, four years after a bailout that fueled resentment against Wall Street.
The Treasury Department is selling 234.2 million shares at $32.50 each in the sixth offering since the 2008 rescue. The proceeds boost the U.S. profit on the rescue that began in 2008 to $22.7 billion, according to a statement today from the Treasury, which injected capital through the Troubled Asset Relief Program.
The U.S. took over the New York-based company in a 2008 bailout that swelled to $182.3 billion to save the global economy from collapse. AIG has sold more than $65 billion of assets to help repay the rescue, while Chief Executive Officer Robert Benmosche scaled back from the derivative bets that almost destroyed the firm. He’s focusing on property-casualty coverage globally and life and retirement products in the U.S.
“Treasury can claim victory, AIG can be free of TARP, and AIG will begin to trade on its merits,” said Josh Stirling, an analyst at Sanford C. Bernstein & Co., in note to investors. Investors in the latest offering “bought this recovering, but still controversial name at a discount from the government.”
Obama bails out Conks again and teaches lesson on unfettered capitalism!
"My fellow Americans, for my next act, I am going to take God down."
