Let’s not mince words: AIG is on the hook for $182.5 billion dollars to the taxpayers. And it high-grade, enzyme-free manure to pretend this is going to be repaid anytime soon.
Chief Executive Officer Robert Benmosche may be a nice guy, and possibly capable of squeezing some performance out of AIG, but the massive amounts of money involved means bailout it will be a very very long time coming.
Not likely in your lifetime.
Consider that if the company comes up with an extra $2 billion dollars per year — $1.83 billion too be precise — it would take a full century to repay the taxpayers the $182.5 billion.
Note that AIG’s profit last quarter was $1.82 billion. Thus, they could accelerate the repayment dramatically if they decided to turn over every last cent of profit to Uncle Sam for every quarter for the next 25 years. That assumes they can continue to maintain profitability, and not have a losing quarter.
I don’t know about you, but I am not holding my breath.