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AIG sells Asian unit in bid to pay back bailout

March 1st, 2010 . by TexasFred

AIG sells Asian unit in bid to pay back bailout

LONDON – British insurer Prudential PLC said Monday it will buy the Asian unit of bailed out American International Group Inc. in a deal worth $35.5 billion that will allow AIG to pay back some of the money it owes U.S. taxpayers.

AIG, which was kept alive by a $182.5 billion rescue by the U.S. government in September 2008, will get $25 billion in cash — $20 billion of that from a Prudential rights issue — and $10.5 billion in new shares and securities for the sale of AIA Group Ltd.

The combined group will be the leading life insurer in Hong Kong, Singapore, Malaysia, Indonesia, Vietnam, Thailand and the Philippines, as well as the biggest foreign life insurer in China and India, Prudential said.

Full Story Here:
AIG sells Asian unit in bid to pay back bailout

Paying back some is good, paying back ALL is a lot better. But ALL will NEVER happen. AIG is a losing proposition. I don’t care how you look at it, AIG is bankrupting the American economy.

Don’t take me wrong, $35 Billion is a lot of money, but it’s only a stop-gap in the grand scheme of things. AIG is still bleeding money.

AIG, which is now 80 percent owned by the U.S. government, said Friday it lost $8.87 billion in the fourth quarter as its general insurance business remained weak.

As of Dec. 31, AIG’s outstanding assistance from the U.S. government totaled $129.26 billion, up 5.7 percent from the end of the third quarter due to accrued interest.

That total includes $94.76 billion in loans and interest, and $34.5 billion tied to the value of investments the government bought from AIG. As those investments pay off or rise in value, the government recoups more money.

No matter how you look at it, AIG is killing the American economy. When Obama and Company decided that AIG was ‘too big to fail’ they bought AIG, and all the accrued debt OF AIG.

These other companies buying AIG, part and/or parcel, that’s a good thing, right?

If these companies assume the debt of AIG, how do you suppose they are going to pay that debt off? Do you think they may pass the costs along to their customers with higher rates, higher costs of doing business with their particular company?

That’s how business works, if MY costs go up, I pass those increases off to MY customers with an increase in the price of MY goods and/or services.

Last month, MetLife Inc. confirmed that it is in talks with AIG to buy one of AIG’s insurance units. Media reports price the deal at as much as $15 billion. The two companies have been in discussions for months about a potential deal for AIG’s American Life Insurance Co., known as Alico.

Here’s the deal, if you are insured by MetLife, you’re going to pay a lot more money to watch Ol’ Snoopy fly along in the MetLife blimp!

Prudential estimated pretax savings of $340 million per year within three years.

To recoup their $35 BILLION investment in AIG, at this rate, Prudential should break even, if their three year estimate is correct, in something like, what? 300 years maybe?

Long term investment is one thing, but that’s a bit of a stretch in MY opinion.

AIG is, according to the financial whiz kids in the Obama administration, just too big to let fail. Those are their words.

If AIG had been allowed to fail, or do a full reorganization, not as government bailout or buyout, and IF the U.S. taxpayer hadn’t been raped for the $182.5 billion rescue by the U.S. government in September 2008, under George W. Bush, and HIS financial whiz kids, wouldn’t the American economy have been, at least, NO worse off?

Wouldn’t the economy have found it’s own level of comfort by now? Shouldn’t business be taking care of business without government intervention?

The government owns General Motors, Chrysler and AIG. Can someone point out to me where, in our Constitution, where exactly it says anything about the U.S. government being in the car or insurance business?

Until the American worker is actually working, until the American industrial and manufacturing concerns are fully up and running, our economy will NOT make any substantial recovery.

Sadly, American business is afraid to invest it’s assets in employee growth or new structure. If the American business environment is afraid to invest, you have to ask yourself WHY are they afraid to invest in America?

You have only to look as far as the White House and it’s current infestation. There is NO stability in our government.

American business people have NO confidence in the Obama administration. Business people look at Obama with fear. They fear socialization, they fear huge increases in business taxes. That old Spread the Wealth thing. They fear that the wealth that gets spread will be theirs!

Obama has got to pay for this BS somehow, and that his plan I believe! The socialization of America! And we’re being rapidly consumed BY that socialization, and a move to One World Government

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5 Responses to “AIG sells Asian unit in bid to pay back bailout”

  1. comment number 1 by: Ron Russell

    As you say Fred, AIG is a losing proposition , a lost cause better to let it just fade away. With the debt that AIG has incurred there is just no way to pass that along with higher rates they would no longer be competitive in the market place.

    The fear that the Obama administrative has put in the business community will not subside until he is gone. At this point he has no hope of changing that. Then as you say, this hostility toward private enterprise along with the actions taken again businesses so far could be some grand scheme toward destroying the free market system in this country and the installation of a new order—one based on extreme Keynesianism, in other words something very akin to the old communism of eastern Europe.

  2. comment number 2 by: Right Truth

    George Soros is mad at Obama because he didn’t take over the banks. He even said that. They are really OUT there now.

  3. comment number 3 by: minuteman26

    Soros needs to be hung as a traitor. AIG needs to be allowed to fail.

  4. comment number 4 by: BobF

    One hundred eighty five billion dollars!! We gave AIG 185 billion dollars? The B-2 Stealth Bomber cost about 2 billion each with 21 aircraft produced for a total cost, with upgrades, of about 44 billion. For 185 billion, we could have double the production of the B-2, built a couple wings of F-22 Raptors, and developed and deployed a new air refueling tanker. Just think of the jobs that would have created along with the security provided this nation.

  5. comment number 5 by: ng4779

    Soros needs to go back to whatever cave he crawled out of. He is a foreigner that has wreaked havoc on Europe as well. He sure is cocky, but then again he owns POTUS.

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