Monday, November 9, 2009
Federal Money Working Hard
After U.S. rescue, AIG profitable
American International Group Inc. posted its second straight quarterly profit as its core insurance operations continued to stabilize after the company's $182 billion bailout by the government last year. A recovery in those operations is considered vital to AIG's repaying the government, which now owns 80 percent of the company. AIG's results were helped by the increasing value of investments it still holds that soured last year and helped drive it to the brink of collapse. In the quarter ended Sept. 30, AIG had a profit of $92 million compared with a loss of $24.5 million in last year's period. - AP
Math:
$92,000,000 x 4 = $368,000,000 (profit per year)
2 1/2 years at said profit rate = $1 Billion (*)
If the profit is plowed, Bailout could be paid in full after 455 years
note: this does not include interest amount due
(*) Using Wall Street Math, Yearly Profit Amount is rounded up to $400 million
Related: Dow surges to 52-week high
Soft dollar after G-20 meeting, boosts gold to a new record... Investors maintain upbeat sentiment, eye developments on potential mergers.