American International Group (AIG) may have turned the government not only into a lender of last resort, but a buyer of last resort as well.
AIG, the battered insurance giant, is reportedly facing a loss of up to $60 billion on Monday, according to several news outlets, and has received only paltry bids on several prized businesses it's been trying to sell to repay a massive government loan. A combination of factors -- a weak economic outlook, few bidders and those bidders' knowledge that AIG is desperate to sell -- have complicated the firm's efforts.
In exchange for $150 billion in emergency funds last fall, the Federal Reserve Bank of New York received a nearly 80% stake in AIG in the form of preferred stock. AIG is required to pay out hefty dividends on those shares, but as it faces additional losses, AIG and the government are hammering out a new repayment plan and considering radical options to keep the struggling firm afloat.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV