The government-appointed chief executive of the insurance conglomerate appears poised to deliver first-quarter results that suggest AIG will not need additional capital from the government. You may remember AIG (AIG:American International Group Inc News , chart , profile , more Last: 1.73+0.27+18.49%
4:01pm 05/05/2009
Delayed quote dataAdd to portfolio Analyst Create alert Insider Discuss Financials Sponsored by: AIG 1.73, +0.27, +18.5%) reported a $61.7 billion loss for the fourth quarter. See full story. This news is being taken as a positive sign that AIG, if not "A-OK" as some headline writers would suggest, has at least stabilized. Shares rose 14% in early trading in anticipation the losses have ebbed. Liddy has given shareholders a nice boost by suggesting the bleeding has stopped. This was the tack that produced the rally that began in early March. Vikram Pandit of Citigroup Inc. (C:Citigroup Inc News , chart , profile , more Last: 3.31+0.11+3.44%
4:00pm 05/05/2009
Delayed quote dataAdd to portfolio Analyst Create alert Insider Discuss Financials Sponsored by: C 3.31, +0.11, +3.4%) and Ken Lewis at Bank of America Corp. (BAC:bank of america corporation com News , chart , profile , more Last: 10.84+0.46+4.43%
4:00pm 05/05/2009
Delayed quote dataAdd to portfolio Analyst Create alert Insider Discuss Financials Sponsored by: BAC 10.84, +0.46, +4.4%) both suggested their respective banks were profitable during the first two months of the year, and the market hasn't paused to look back. Taken in context, however, AIG is no Citi or B. of A. It is the ultimate black hole for government cash. Insurance is a good business, but even in its most profitable years, AIG never posted much more than $10 billion in profits. At that rate, it will take at least until 2025 to make taxpayers whole, unless it hires Bernie Madoff as chief financial officer. Plus, there is something to be said for the lack of veracity of financial statements and chief executives these days. Ben Bernanke, the Federal Reserve chairman, on Tuesday contradicted Lewis. Bernanke said he never urged B. of A.'s Lewis to keep quiet about Merrill Lynch & Co. bonuses. See full story. AIG's Liddy, who endured congressional grief and public outrage over his company's bonuses in March, could teach Lewis about what not to do when it comes to defending shocking payments. As for all financial companies, let's save the congratulations until all of them have repaid taxpayers. |