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AIG Logs a Profit

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Posted on Aug 7, 2009
AIG sign
visitbulgaria.info

Business aliases: The AIG name was mired in scandal, so actual insurance business has been conducted under other names.

For almost two years, insurance giant AIG has experienced quarterly losses—until now. The infamous company is reporting its first profitable quarter since 2007, a turnabout that will give the U.S. government a whopping $1.5 billion gain as a shareholder, while individual shareholders get to split $311 million among themselves.

Though market conditions may have improved, some of the profit must be due to the fact that CEO Edward Liddy has taken a salary of $1 a year after an AIG scandal that saw executives collect personal bonuses from government bailout money.

The New York Times:

The American International Group reported a profit on Friday, its first since the third quarter of 2007, saying parts of its business had stabilized and also citing a favorable accounting change.

The company’s net income for the second quarter was $1.8 billion, compared with a $5.3 billion loss in the second quarter of 2008. The federal government’s share of the profit was $1.5 billion, since the government became the company’s biggest shareholder after bailing out A.I.G. last fall.

That leaves a profit of $311 million, or $2.30 a share, for A.I.G.’s common shareholders.

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By ChaoticGood, August 8, 2009 at 11:05 pm Link to this comment

All hail AIG the “American International God”.  I live to serve you.  My life and my children’s future is in your beneficent all-knowing hands.  I beseech you to grant me favor in my job and give me the strength to pay ever higher taxes in support of your temples of business.  I do this in abject reverence of your timeless and immortal love for me.

All hail MJ Sullivan (pbuh)

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By RAE, August 8, 2009 at 1:24 pm Link to this comment

Sure must be hard to “make a profit” when you’re spotted a few BILLION to start with.

So what has AIG and similar financial outfits learned from all this? Very simple. LOSE lots and lots of money every quarter, continue to pay HUGE bonuses to those in charge of directing those losses, and threaten to go bankrupt and ruin tens of thousands of lives when the shit hits the fan. The government will hand over what you need to remain in business - “business as usual - you won’t even have to cancel the bonuses.”

Of course, AIG & the Feds are now one and the same. Left & right pockets of the same charade - a monumental collusion and ripoff. I’m at a loss for words to adequately describe my rage and disgust. Those fat cats sitting in their million dollar boardrooms designing these THEFTS should all be in jail for the rest of their lives.

But they won’t be. For some reason that completely escapes me those in our governments think they’re doing us a favor by joining in with these extortionists by paying them off with our money.

That is why I do not pay one cent in taxes any more. I woke up one morning and it dawned on me that I was being used by my own government as a cash cow and nothing more. I remember my father admonishing me with “heck, son, the more you pay in tax the more you’re earning for yourself!”

Well, dad, while that might be technically true, I do not consider spending 100% of my time and effort to collect 50% or less of the reward as a fair deal. I don’t really need that extra money so why should I not use the extra time to do what I bloody well want to do?

From that day, I have refused to earn enough money to put me in a bracket they can tax. Until the government asks me how I’d like them to “invest” MY MONEY, they can simply do without it. If anyone’s going to WASTE MY MONEY, it’s going to be ME.

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By truedigger3, August 8, 2009 at 12:30 pm Link to this comment

What profits. What turn around. AIG got almost two hundred billion dollars from the treasury. Did they return all and made some more?? Of course not. The same logic apply to the so called profits of the banks.
Please, no accounting gemmicks nor silly jokes??!!

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By Bat Guano, August 8, 2009 at 8:49 am Link to this comment
(Unregistered commenter)

The new mark to fantasy accounting used by corporations and banks works wonders doesn’t it.

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By GB, August 8, 2009 at 6:57 am Link to this comment
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Let me steal a few billion from the citizens of our country and I’ll show you some profit as well. Corporate welfare goes a long way while health care is every man for himself. Good policy conservatives. That’s the way to continue screwing our economy. When Bill Clinton tried to get as many citizens off the welfare roles he forgot about the Wall Street swindlers.

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By artie, August 7, 2009 at 10:57 am Link to this comment
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Greenberg looted AIG for decades of about $4 billion. He was fined a paltry$15 million. He is now starting a new, offshore outfit to contiue his grasping for money, at age 83.

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