Taxpayer Personal Financing Being Repaid By American International Group

the bailout caused AIG to borrow a ton of money. The insurance coverage business really took out a $130 billion short term loan from all of the working class individuals that caused lots of talk. AIG seems to be doing really well now. The Treasury met with the business to work out debt negotiation as the business has already paid back various billion. The plan for the business is to switch from the 80 % in preferred shares the government has to common shares. This should help the company get some fast money soon Post resource – AIG makes more progress in paying off taxpayer short term loan by Personal Money Store.

Treasury works to help AIG create a payment plan

All businesses that got emergency money from the government hope the balances can get to zero faster or later. The government took 80 percent of preferred shares from American International Group. This was in exchange for the $132 billion loan that came from taxpayers. Since then, AIG has been selling sub-companies and creating capital to pay off the government. Payment plans are what the Treasury office and American International Group met to discuss. USA Today explains this. The business hopes to finish paying off the loan in two years.

Selling off stock

The bulk of the fund raising would be done via sale of stock. About 80 percent of preferred shares in AIG are held by the government. There is less security in preferred shares than there is in security bonds although there are more dividends. The preferred shares the government holds would be converted to almost a 90 percent share of common stock, which would be offered by the government to investors. Should the stock price rise accordingly, the government will actually turn a profit.

American International Group hopes to go miles before napping

More than $100 billion is still owed by American International Group to the government. That is a lot of cash for any corporation to get together in two years. The business has been doing well in settling accounts, as non-essential divisions have been sold off to other corporations.

Additional reading

USA Today

usatoday.com/money/industries/insurance/2010-09-14-wsj-AIG_N.htm

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