Is Anyone Watching AIG Pull This Fast One?

Posted: December 2, 2009 in Technology and Business

Here was yesterday’s AIG headline:

     "AIG reduces government borrowings by $25 billion"

Sounds great, eh?

Not so fast. 

AIG isn’t  paying us back (like a lot of other banks have/are).  Rather, they are spinning off two units and preparing to take them public. 

For this, we (the U.S. taxpayer) gets $25 billion in preferred stock.

Here’s the problem:  We already own 80% of AIG… which means we already own 80% of these two spin-offs… but, percentage-wise, AIG is giving us (the U.S. taxpayer) far less than our actual ownership stake.

I mentioned this once before here.  Go figure this quote:

     "AIG continues to make good on its commitment to pay the American people back," AIG CEO Robert Benmosche said in a statement.

Bull shit.  Is anyone watching this guy

P.S.  How does this math work?!?

     "As of Sept. 30, AIG had tapped $122.31 billion of the aid package and owed the government $85.66 billion in loans. Tuesday’s separation of AIA and Alico would reduce the outstanding aid package to $97.31 billion and the amount owed in loans to $60.66 billion."

Looks like they’re reducing what they owe by $50 billion, not $25 billion… !

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