Will taxpayers get AIG money back?
TEXT OF STORY
BILL RADKE: We may soon learn what happens next with AIG. You know taxpayers bailed out the insurance giant, we own a big chunk of AIG shares. Word is, the government is getting ready to sell that stock, so we can get some of our money back. But will we?
Here’s Marketplace’s Nancy Marshall Genzer.
NANCY MARSHALL GENZER: Breaking up is hard to do, especially when the stock market has been in the tank. There are reports the Treasury Department is now preparing to convert its $49 billion worth of preferred AIG shares into common stock, which is easier to sell. The market is up right now. So investors might be feeling confident enough to dive into AIG stock. Plus, the insurance giant got good prices recently when it spun off some subsidiaries. And that luster could rub off on the stock.
Anne Vorce is an economist at the New America Foundation.
ANNE VORCE: If the markets understand how strong some of the AIG lines are then I think that could give a reassessment of AIG altogether.
Vorce says there’s a 40 percent chance taxpayers could see a profit. Don’t get your hopes up too high, though. The congressional panel overseeing the financial bailout says taxpayers are still at risk for severe losses from their AIG investments.
In Washington, I’m Nancy Marshall Genzer for Marketplace.
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