AIG bailout that angered Bernanke to end with Treasury sale

U.S. to exit AIG stake with offering of 234 million shares

Only Option

Rescuing AIG “was something the government should never have had to do,” Treasury Secretary Timothy F. Geithner said in a Sept. 10 statement “We had no better option at the time to protect the American economy.”

Before today, the U.S. had sold $44 billion of AIG shares in five offerings, and the insurer bought back $13 billion in the sales. AIG will not buy shares in the latest offering, said Jim Ankner, a spokesman for the company. The New York Fed in August finished selling securities that it acquired in AIG’s rescue.

U.S. officials should thank AIG for returning to profitability and paying back the government, Benmosche said, according to New York Magazine.

“We have done all the right things,” Benmosche said, according to an article published in October. “Somebody should say, ‘By golly, those AIG people made a promise and they are living up to a promise!’ We’re left with a major part of the economy in America; they’re going to make a profit on top of everything else they’ve got.”

 

 

 

 

 

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