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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. $AIG

Because of the ravenous demand from investors, the U.S. Treasury sold an extra 83 million shares, cutting its stake to 16%.

FCFYield: This $AIG deal sold like hotcakes. Oversubscribed and it will be priced tonight (vs tomorrow as originally planned)

A_F: based on the Treasuries profits on $AIG maybe THEY should be bailing out euro banks 🙂
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Maureen Farrell
Maureen Farrell
Staff writer, CNNMoney

Maureen Farrell is a staff writer at CNNMoney and covers Wall Street, banking, mergers and the stock and bond markets. Prior to joining CNNMoney, she covered venture capital and entrepreneurs for Forbes, and mergers and bankruptcy for Mergermarket and Debtwire, both divisions of the Financial Times.

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