Tuesday, December 11, 2012

U.S. profits from AIG bailout

From Bloomberg Business:
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.
These are the kinds of things you notice when you take the time to see the long game. Nobody liked the idea of bailing out firms like AIG. But the consequences of not doing so would have been disastrous for everyone. And now today we see how well that has all been managed by Treasury Secretary Geithner. He deserves a shout-out from all of us. And I'm here to give one to him.

2 comments:

  1. I still don't get why everyone badmouthed (and continue to)Geithner. If you had told me in September of 2008 that we would make a profit off of cleaning up the financial disaster I would have thought you insane.

    ReplyDelete
  2. Thanks SP for bringing this one to the surface!

    All of the repugs were trying to keep the real mess Bush made and their votes in favor of it out of the news and make Geithner the fall guy. It did not work.
    This is the kind of work under the radar the Obama administration is doing all the time and keeping it out of the news. Depriving repugs a target because as soon as PBO get positive press, they start shooting their arrows.
    Smilingl8dy

    ReplyDelete