The Bear Stearns bailout did nothing for the government. Fannie and Freddie were made to save homeowners across the nation but did little for the government. AIG, on the other hand, might have some value for the government.
As recently as today, AIG’s former CEO was filing papers in the interest of buying AIG. The New York Times details why:
NYT: A.I.G.’s general insurance business, which accounted for nearly half its $110 billion in revenue last year, has held up well. A.I.G. claims that its companies are the largest underwriters of commercial and industrial insurance in the United States. Its policies cover everything from environmental liability for companies to auto insurance.
A.I.G.’s asset management group — it includes a private banking subsidiary for the wealthy, a broker dealer and another unit that manages mutual funds — has had losses, but it is not a unit that pushed the company to the brink. That group reported its first loss in years in the last quarter of 2007; in the second quarter of this year, it reported an operating loss of $314 million, which is modest these days.
Then there is the aircraft leasing business, which owns more than 900 planes and is part of the company’s financial services group. The company stated in its annual filing with regulators that the leasing unit would buy 73 new aircraft this year. That unit is profitable, according to the most recent report for the quarter ended June 30.
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