It's amazing what $183 billion will do.
American International Group Inc. (AIG), the troubled financial firm that threatened to bring down the U.S. economy, is showing stable revenue for its insurance units and improving its ability to repay taxpayers 17 months after a bailout that swelled to $182.3 billion.
AIG property-casualty businesses, contributing more than a third of the company’s revenue, posted sales increases in three straight quarters last year after plunging 23% following the company’s near-death experience in September 2008. Life insurance and retirement-products sales, AIG’s other main operations, rose for the first time since the bailout in the three months ended September 2009. AIG gained 6.5% in New York trading today.
“There are clear signs that AIG has pulled out of what could have been a death spiral,” said David Havens, managing director in credit trading at Nomura Securities International Inc. in New York. AIG’s insurance results have been improving “after dropping off a cliff following the bailout,” he said.
Tim Geithner said that it's possible that the government might in fact possibly lose some money on AIG, depending, of course, on its eventual outcome.
The GAO said we're out $30 billion.
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