Taxpayer private loans being repaid by AIG

Of course, AIG borrowed money through the bailout. It borrowed a lot more than many though. The insurance giant took out more than $130 billion in installment loans from the working class individuals to keep from collapse, and controversy surrounded it. It seems now that AIG is making advances. The Treasury met with the business to work out debt negotiation as the business has already repaid a number of billion. The company would get fast cash by converting the 80 percent in preferred shares the government holds to common shares.

Payment plan between American International Group and Treasury

There is not a business that got emergency loans from the government that does not want those balances reduced to zero. AIG received about $132 billion in loans from the working class individuals, and for that nice offer of help, the government got an 80 % stake within the preferred shares of the company. American International Group has been selling sub-companies and creating capital. This is all being done with the hope the government can be repaid soon. USA Today explains that the Treasury office and AIG recently met to talk about payment plans. The business hopes that in two years, it can be debt free. That is the plan it has made.

Money coming from selling stock

The company’s current plan is to sell stock. This is supposed to raise a lot of money. The government petty much owns American International Group right now. It has about 80 percent of the company’s preferred shares. Preferred shares are different from common shares, in that you will find more in dividends, but are less of a security than bonds. The government would offer stock to the investors with the preferred shares it holds right now which is about 90 percent of common stock. Should the stock price rise accordingly, the government will really turn a profit.

Miles to go before American International Group sleeps

Currently, American International Group still owes the government more than $100 billion. It is a hefty goal for the company to get the cash in two years. It is a goal hardly any company would take. The business has been doing well in settling accounts, as non-essential divisions have been sold off to other companies.

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USA Today

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