AIG and the New Victim Mentality
Some of you made harsh comments about what I wrote about AIG. I said that AIG should sue the U.S. government and the Fed for saving it when it could have (more likely would have) gone under during the peak of the crisis in 2008.
Insights & Indictments reader Darrell said, "Enough. This is the most vile piece... I have ever read. Those people SHOULD have been allowed to fail. FULL bankruptcy! To borrow from the taxpayers to compensate the "managers" who steered us into this mess with bonuses, and then whine [when] the terms of the loan were too extreme is beyond hypocritical. Capitalism without risk is NOT capitalism. Something you would do well to learn. I am unsubscribing form this service."
Matt chimed in, "I'm with you. Acting like AIG is a victim of the big, mean Fed is preposterous. Maybe Shah and Alex Jones should take their baloney show on the road."
I'm shattered. I've been put upon. I feel victimized by these comments. Where's the safe harbor for journalists and bloggers? How can I be criticized so harshly and not feel victimized? Oh, the humanity!
Of course I'm kidding.
I subject myself to any and all comments when I exercise my freedom of speech. I keep a "Comments" section on my website so my readers can exercise their freedom of speech. I'm not a victim. I don't need any protection from free speech. Free speech is a two-way street.
The point is that I'm sick of the victim mentality. Are you fed up yet?Read More...
AIG Stock Sale Makes it a "Buy" (NYSE: AIG)
The U.S. Treasury Department has sold off its remaining shares of American International Group (NYSE: AIG), acquired in a financial crisis bailout move.
The Treasury had 234.17 million shares left, or roughly 16% of the insurance giant's outstanding stock.
After unburdening itself from its mountainous holding, the Treasury will only own warrants to purchase additional shares of AIG.
Monday's stock sale announcement follows the department's September sale of about 554 million shares to the public at $32.50 per share. That liquidation marked the end of the Treasury's majority ownership in the firm.
This final stock sale is good news for AIG and its shareholders - and U.S. taxpayers.
"The closing of this transaction will mark the full resolution of America's financial support of AIG-with a profit to taxpayers of $22.7 billion to date. It marks on of the most extraordinary-and what many believed to be the most unlikely turnaround in American business history. And you did it," AIG CEO Robert Benmosche penned in a company email to employees on Tuesday.
After the news, Sterne, Agee & Leach, who give AIG a "Buy" rating, said the sale was good for investors.
"With the U.S. Treasury now out of the stock and AIG once again a 100% privately held company, we expect management will be able to turn its full attention to managing the company to drive improved financial performance and higher return on equity," wrote analysts.
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