Bailout Turns $22.7 Billon Profit

Discussion in 'Economy' started by Star, Dec 11, 2012.

  1. Star
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    Star Gold Member

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    Treasury Has Sold Its Last Shares of AIG (and Turned a Profit, Too) - DailyFinance


    By MARTIN CRUTSINGER

    WASHINGTON -- The Treasury Department said Tuesday that it has sold all of its remaining shares of American International Group (AIG), moving to wrap up the government's biggest bailout of the 2008 financial crisis.

    Treasury said it received $32.50 per share for its 234.2 million remaining shares, which represented a 16 percent ownership stake in the giant insurance company.

    With this sale, Treasury said the government has received $22.7 billion more than the $182 billion bailout it provided to support AIG during the height of the financial crisis.

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  2. martybegan
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    martybegan Gold Member

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    So for investing $182B it got back $22.7B, a 12% ROI over 4 years. It works out to about 3% per year, if you assume equal amounts back per year.

    Not horrible, but not that great as far as investing that much money into something. At least it wasnt a loss.

    BUT WAIT:

    Based on inflation, the gain wasnt that great, as inflation averaged 1.9% from 2008 to 2012 (used the 5 year period to get credit for the 0.1% inflation in 2008 to be fair).

    Current Inflation Rates | Monthly and Yearly Chart, Graph and Table: 2002-2012 Data - US Inflation Calculator

    So basically it was a 1% return per year over inflation. Still better than a loss, but still pretty meh.
     
  3. Avorysuds
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    Avorysuds Gold Member

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    Where is my fucking bail out?
     

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