The Buzz
Cashing out of AIG may be a boon for investors
September 11, 2012: 3:51 PM ET
It's too early to tell whether investors can cash in as the U.S. Treasury cashes out of its stake in AIG (AIG).
But both the government and shareholders can claim hearty returns for now. AIG's stock is up more than 40% since January, even after falling 1% Tuesday. And the U.S. government will earn a profit of $15.1 billion when it sells the bulk of its stake in AIG tonight.
StockTwits traders had a lot to say on the matter.
ToddSullivan: $AIG had real assets to get $$ back...$LEH, not so much
Shareholders will never know what a Lehman Brothers ($LEH) bailout might have looked like, but it looks like AIG has managed to get itself back on track.
dschorrnyc: The gov't never wanted to own $AIG. Them selling is a huge positive. Means the company is on solid footing.
ultimatejazzfan: @10handles anyone shorting $AIG doesnt understand what is happening. Ownership change from weak hands (govt) to strong hands and less float
AIG bought back some of its own shares, $5 billion worth. In normal times, when a major shareholder cashes out of a company, it's a bad sign. The U.S. government isn't exactly your average investor, and its exit means that AIG can begin to phase out of its prolonged adolescence.
tjmoynihan: The bailed out financials win. http://t.co/T6FlFtay $AIG
Because of the ravenous demand from investors, the U.S. Treasury sold an extra 83 million shares, cutting its stake to 16%.
-
Treasury to sell more AIG shares
American International Group (AIG) said it will buy back up to $3 billion of its stock from the U.S. Treasury Friday as part of the government's offering of $4.5 billion of the insurer's shares on the open market.
The stock sale will move the U.S. government closer to a point where it would own just half of the insurer's shares outstanding. The Treasury Department currently holds a 61% stake in the MORE
Maureen Farrell - Aug 3, 2012 4:21 PM ET
- SPAM gets slammed(1:06)
- Boeing's 787 nightmare is over(0:58)
- Restoration Hardware rides housing wave(1:24)
- Safeway is a safe haven ... for now(1:17)
- Goodyear stock rising like its blimp(1:18)
- Sony fires first shot in gaming price war(1:05)
- Investors say 'da' to McDonald's(1:01)
- Samsung sinks: No winners in mobile?(1:13)
