AIG continues to make solid progress as today they recouped their $5 billion investment in Maiden Lane III plus interest. This $5.6 billion receivable should enable the company to buy back stock at a huge discount to tangible book value. In addition AIG gets 1/3rd of the profits from the remaining assets in the investment vehicle. AIG is getting very little credit for its turnaround and obviously the Federal Government’s large ownership stake is a primary reason, but I expect that issue to be resolved over the next year as AIG will likely buy much of the stake back.
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