Here’s another $25 billion giveaway to AIG. Notice that AIG gets the upside over $25 billion. Does this ever stop? Bloomberg reports.
American International Group Inc., the insurer bailed out by the U.S. government, agreed to hand over stakes in two overseas units to the Federal Reserve Bank of New York to reduce its central-bank debt by $25 billion.
AIG will place its largest non-U.S. life insurance businesses — American International Assurance Co. and American Life Insurance Co. — into special-purpose vehicles to eventually sell shares to the public, the New York-based insurer said today in a statement. The transactions, first disclosed in March amid the company’s third revised rescue, will close in the second half of the year, AIG said…
The New York Fed will get $16 billion of preferred shares in AIA and $9 billion in Alico, AIG said. The insurer will hold common shares in the units and benefit from any value beyond the $25 billion promised to the Fed after share sales.
I am sure the units are worth $25 billion and I am also sure the Federal Government needs to be in the insurance business overseas.