NEW YORK (CNNMoney.com) -- AIG announced Tuesday that it completed a deal wiping out $25 billion of its debt to taxpayers by selling stakes in two subsidiaries to the Federal Reserve Bank of New York. The troubled insurer gave the New York Fed preferred shares of two of its international life insurance companies, including $16 billion of American International Assurance Co. and $9 billion of American Life Insurance Co. The deal was originally announced in March. [5] The debt reduction is the result of a deal first announced last March to give the New York Fed a preferred stake in two of AIG's

Originally posted by TV_Nation


This may seem like good news to some people but to me it is nothing impressive. This action by AIG does not result in the FED getting it's money it is just exchanging one asset for another and the shares the FED picked up are not cash.

The FED has to sell off this equity for at least 25bn and even then AIG still owes 62bn.

In my opinion this is just a move made by AIG to make it look like they are holding up their end of the bargain but in reality the taxpayers are still left with the 25 billion dollar debt until all of the equity is sold.


I guess there is a silver lining tho... the Federal Government is now AIG's biggest shareholder, ugghh!




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I guess there is a silver lining tho... the Federal Government is now AIG's biggest shareholder, ugghh!

They knew which factories to burn, which bridges to blow up, which cargo ships could be sunk in good conscience. They had pothole counts for roads used for invasion and head counts for city blocks marked for incineration.

They weren’t just secret agents. They were secret insurance agents. These undercover underwriters gave their World War II spymasters access to a global industry that both bankrolled and, ultimately, helped bring down Adolf Hitler’s Third Reich.

Newly declassified U.S. intelligence files tell the remarkable story of the ultra-secret Insurance Intelligence Unit, a component of the Office of Strategic Services, a forerunner of the CIA, and its elite counterintelligence branch X-2.

“This story is incredible because the unit begins as part of the desire of American [insurance] interests to contribute to the war effort and exploit it for future economic gain,” said historian Timothy Naftali, a consultant to the Nazi War Criminals Interagency Working Group that was created by Congress last year.

The men behind the insurance unit were OSS head William “Wild Bill” Donovan and California-born insurance magnate Cornelius V. Starr.

Starr had started out selling insurance to Chinese in Shanghai in 1919 and, over the next 50 years, would build what is now American International Group, one of the biggest insurance companies in the world. He was forced to move his operation to New York in 1939, when Japan invaded China.

Starr sent insurance agents into Asia and Europe even before the bombs stopped falling and built what eventually became AIG, which today has its world headquarters in the same downtown New York building where the tiny OSS unit toiled in the deepest secrecy.