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Banking, finance, and taxes

AIG: Finally, A Pay Day For US Taxpayers

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By Douglas A. McIntyre Published
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A deal for UK insurance company Prudential to buy AIG’s (AIG) large Asia insurance firm for $35.5 billion will be announced today. That should be a relief for US taxpayers who have invested $182 billion in the AIG bailout. Most of the proceeds of the sales should go directly to the New York Fed.

Taxpayers could ask why AIG has not been more dutiful in selling some of its other assets.

AIG still has one of the largest commercial aircraft leasing businesses in the world. It also has a property and casualty business and its core life insurance and retirement services operations. It is hard to make the case the an aircraft leasing operation and retirement services business should reside under the same roof, but they do.

It is not clear whether AIG management has been slow in divesting some of its more valuable assets to get money back into the hands of taxpayers or whether the Fed has been inconsistent in putting pressure on AIG to divest the parts of the company which are likely to give the best returns. Either way, it is taking too long. Wall St. is “deal happy” again. The corporate shoppers are out in force, and there are financial services companies in Asia and Europe that have access to capital.

AIG’s management needs a push.

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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