Posted on 12/14/2010 5:03:30 PM PST by Toddsterpatriot
Treasury said Tuesday in its two-year retrospective on the Troubled Asset Relief Program that the net cost of TARP's AIG (AIG) bailout at current market prices is $5.1 billion. The cost of the AIG bailout has been subject of considerable head scratching in recent days, with TARP winding down and the terms of federal assistance to AIG changing for the umpteenth time.......
After the proposed restructuring of AIG, TARP will hold 1.09 billion shares of AIG common stock, plus preferred equity interests in SPVs of approximately $22.3 billion, against a cost basis of $69.8 billion. Valuing the common equity at the market close for October 1 of $38.86 per share implies a net cost of -$5.1 billion.
(Excerpt) Read more at finance.fortune.cnn.com ...
$12.91 times 1.09 billion is about $14 billion. If the estimate of a $5 billion loss was correct, now we're looking at a gain of $9 billion.
There's gonna be a lot of sad Freepers if we don't lose big bucks because of AIG.
AIG ping!!!!
AIG still needs to be parted out.
In my opinion,this is all printed money and the taxpayer are holding the bag. Where is the authority for this? AIG was not a “financial institution” it was an insurance company that guaranteed crap housing loan to people who couldn’t buy lunch, much less a $200,000 house. AIG insured Traunches of crap loan and PMI on 10% (the no down payment 10 %)of these fraudulent loans. This bailout was unconstitutional and illegal and was between insiders at your expense. Never buy anything from AIG in my opinion.
“There’s gonna be a lot of sad Freepers if we don’t lose big bucks because of AIG.”
Not until the Fed buying toxic assets with liquidity to make the Treasury Dept. books look good aspect has been dealt with.
Burns my buttons, wanna be corpo nazi's cryin' over crumbs dribbled out to the unemployed while these guys stole the whole bakery!
TARP did restore confidence and a huge amount has already been paid back just as Bush said it would be.
It's the Porkulus that went to the demand side (not the supply side) that was/is the problem.
Yep. Bailouts are good after all.
And we are supposed to believe these fairy tale numbers from the government. The same people who haven’t told the truth about this sorry mess yet!
Whatever!
Which number is a fairy tale? The market price? The number of shares? The amount lent? All of them?
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