The U.S. government, for the first time since 2008, is officially a minority stakeholder in American International Group Inc. (NYSE: AIG), with an $18 billion stock sale that made money for taxpayers.
The AIG stock sale will reduce the government's stake in the insurance company to about 22% from 53%.
The U.S. Treasury Department announced Sunday it was selling a large chunk of shares in the bailed-out insurer. The government saved AIG in 2008 and 2009 with a bailout package that totaled around $182 billion.
Including Monday's sale and money from AIG, the Treasury claims it has recovered a total of $197.4 billion from AIG - a $15 billion profit for taxpayers.
It's not surprising the government is selling AIG shares. What is unexpected is that such a large chunk of AIG stock will be released into the market at once, instead of spaced out over time.
One reason to shed the stock faster than planned is to credit U.S. President Barack Obama with taxpayer profit ahead of a tight race for the White House.
White House Press Secretary Jay Carney said Monday, "We have been committed to exiting those investments as quickly as practicable. What it does demonstrate is an ongoing commitment to recover taxpayer money. It's safe to say the president is pleased with the progress being made as we wind down these investments."
But even with a multi-billion dollar profit, defending private-sector bailouts is an impossible sell to most voters.
Presidential Election 2012
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AIG Stock Sale Doesn't Justify Bailout Package
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Mitt Romney's Running Mate: Meet the Candidates
Given the ramifications of Election 2012 on the markets and the economy, it's time to evaluate the potential candidates to become Mitt Romney's running mate.
As we approach the summer political conventions, curiosity is escalating over who will join Mitt Romney in seeking the White House. But the most obvious names and faces aren't necessarily the most likely choices.
Five favorites for Romney's running mate have emerged, but few of them deliver what Republicans ideally want in a vice president.
Here's a look at the current favorites, the dark horse candidates, and the candidates most likely to turn down the job despite their impressive resumes.
Voters outside of Ohio don't really know this junior senator from this quintessential swing state. But, just in case you didn't know, Ohio and its 18 electoral votes will surely be up for grabs this fall. And that has Republicans buzzing about Portman and his electability.
Portman provides popularity in the Midwestern trenches, where it will certainly be a dogfight up until Nov. 6. As an Ohio Congressman, Portman consistently won his southern Ohio House district with at least 70% of the vote. In his 2010 senate campaign, he won 57% of the vote and carried a staggering 82 of his state's 88 counties.
Portman also has received commendation for executive experience and time in Washington on his resume, having served George W. Bush as budget director.
Still, this executive experience could be his biggest weakness. Portman presided over then-record deficits during the Bush years, which doesn't mesh well with the GOP message of reducing government spending. Nonetheless, Portman provides political cover and popularity in a crucial swing state.
The only glaring downside for the Republicans would be that his departure from the Senate could lead to the party losing a critical spot come 2016 when Portman's seat is up for reelection.
Overall: Medium Risk, Medium Reward.
As we approach the summer political conventions, curiosity is escalating over who will join Mitt Romney in seeking the White House. But the most obvious names and faces aren't necessarily the most likely choices.
Five favorites for Romney's running mate have emerged, but few of them deliver what Republicans ideally want in a vice president.
Here's a look at the current favorites, the dark horse candidates, and the candidates most likely to turn down the job despite their impressive resumes.
Mitt Romney's Running Mate in Election 2012: The Current Favorites
1. Ohio Senator Rob PortmanVoters outside of Ohio don't really know this junior senator from this quintessential swing state. But, just in case you didn't know, Ohio and its 18 electoral votes will surely be up for grabs this fall. And that has Republicans buzzing about Portman and his electability.
Portman provides popularity in the Midwestern trenches, where it will certainly be a dogfight up until Nov. 6. As an Ohio Congressman, Portman consistently won his southern Ohio House district with at least 70% of the vote. In his 2010 senate campaign, he won 57% of the vote and carried a staggering 82 of his state's 88 counties.
Portman also has received commendation for executive experience and time in Washington on his resume, having served George W. Bush as budget director.
Still, this executive experience could be his biggest weakness. Portman presided over then-record deficits during the Bush years, which doesn't mesh well with the GOP message of reducing government spending. Nonetheless, Portman provides political cover and popularity in a crucial swing state.
The only glaring downside for the Republicans would be that his departure from the Senate could lead to the party losing a critical spot come 2016 when Portman's seat is up for reelection.
Overall: Medium Risk, Medium Reward.
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