U.S. to Become Minority Shareholder in AIG (AIG) Following $21B Stake Sale
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American International Group (NYSE: AIG) is lower Monday morning following a late-Sunday announcement that the U.S. is looking to sell another $21 billion of its stake in the insurer.
The sale would make the U.S. a minority shareholder for the first time since September 2008.
News is a boon for CEO Robert Benmosche, who vowed to bring AIG out of government control under his watch.
The WSJ notes that controversy abounds, with the presidential election less than two months away. Bailouts for General Motors (NYSE: GM) and Ally Financial may end up costing the U.S. about $68 billion, according to data.
In addition, the U.S. Treasury has offered little in the way of what it will do with its massive investments in Fannie Mae and Freddie Mac, the two-largest mortgage GSEs in the U.S. The duo have received about $188 billion in taxpayer support, with no clear signal on when housing expansion will happen.
Pricing will determine the total stake the U.S. Treasury will maintain, though it could be as low as 20 percent if shares price favorably.
Since investing $245 billion in more than 700 banks during the bailout, its estimated that over $264 billion has been collected since.
Since September 2008, AIG shares have remained relatively flat, holding in a $25 to $50 range, though the stock has traded from $25 to $30 in recent months. AIG is down 2 percent early Monday.
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The sale would make the U.S. a minority shareholder for the first time since September 2008.
News is a boon for CEO Robert Benmosche, who vowed to bring AIG out of government control under his watch.
The WSJ notes that controversy abounds, with the presidential election less than two months away. Bailouts for General Motors (NYSE: GM) and Ally Financial may end up costing the U.S. about $68 billion, according to data.
In addition, the U.S. Treasury has offered little in the way of what it will do with its massive investments in Fannie Mae and Freddie Mac, the two-largest mortgage GSEs in the U.S. The duo have received about $188 billion in taxpayer support, with no clear signal on when housing expansion will happen.
Pricing will determine the total stake the U.S. Treasury will maintain, though it could be as low as 20 percent if shares price favorably.
Since investing $245 billion in more than 700 banks during the bailout, its estimated that over $264 billion has been collected since.
Since September 2008, AIG shares have remained relatively flat, holding in a $25 to $50 range, though the stock has traded from $25 to $30 in recent months. AIG is down 2 percent early Monday.
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