Treasury Exits Last AIG Stake
American International Group, Inc. (NYSE: AIG) is just about entirely about to be outside of the government's direct oversight. Uncle Sam's giant bailout has already turned out to be profitable for taxpayers, but now we have news that the Treasury Department is about to sell its remaining stake of 16% or so in the insurance giant.
We have been calling for Uncle Sam to use the strength of the last secondary stock sale as cover for a total and complete exit from this bailout. Now that finally appears to be happening.
AIG shares closed down 2.2% at $33.36 on Monday against a 52-week range of $22.19 to $37.67. We last saw AIG down only 0.5% at $32.85 in the after-hours session.
It appears as though the US Treasury may still hold onto some warrants even after the share sale. What this does for 2013 and beyond is allow investors to evaluate AIG as its own company rather as a company that is effectively in receivership. The problem that AIG has is that many investors still cannot decide how they are supposed to evaluate this behemoth.
JON C. OGG
Filed under: 24/7 Wall St. Wire, Banking & Finance Tagged: AIG