According to the Government Accountability Office (GAO), the U.S. Treasury is on track to profit over $15 billion from the sale of taxpayer-owned shares in insurance giant AIG.
(Reuters) – Taxpayers could realize a profit of more than $15.1 billion from the massive government bailout of insurer American International Group, a congressional watchdog said. [...]
Treasury sold AIG common stock in May 2011 and this March. Another sale on Monday – that realized $5.8 billion – reduced taxpayer equity interest in AIG to 61 percent.
The AIG portfolio includes a Federal Reserve Bank of New York loan to Maiden Lane III of about $8 billion, which the GAO analysis expects to be repaid in full and net additional returns.
“When all the assistance is considered, the amount the federal government ultimately takes in could exceed the total support extended to AIG by more than $15.1 billion,” GAO found.
That $15 billion means we don’t have to take food away from granny, kick nearly 300,000 children off their school lunch program, and kick another 1.8 million off food stamps, right?
I wouldn’t count on it.
The acquisition (or bailout) of AIG and the subsequent profiting off of its sale doesn’t exactly fit the profile of the socialist inquisition we’ve been hearing so much about.