AIG Declares $1.8 Billion Quarterly Profit

August 7, 2009

(ChattahBox) — Embattled insurance giant, The American International Group (AIG),  has reported its first profit since the third quarter of 2007. Second quarter net earnings were $1.8 billion, or $2.30 a share, against a net loss of $5.4 billion, or $41.13 a share in the same period a year earlier. The federal government’s share of the profit was $1.5 billion, leaving a profit of $311 million, or $2.30 a share, for A.I.G.’s common shareholders. The U.S. government owns 80% of AIG, after the company got into risky securities, which brought them on the brink of collapse, and in 2008 received $182 billion in federal bailout funds.  The reported results beat analysts’ expectations, sending AIG’s stock to surge before the open, trading at $25.25, or an estimated market cap of $3 billion, which is a far cry from the $182 billion we as tax payers have invested.


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