At a time where Feds announcing new quantitative easing to stimulate job growth and bring down the stubbornly high unemployment, some of the earlier bailout efforts are bringing in profits for the U.S. tax payers.
Four years ago, the U.S. Government bailed out several Wall Street behemoths amid heavy criticism and controversy. One of those bailed out by the New York Federal Reserve and the U.S. Treasury during the financial crisis included the insurance giant American International Group (AIG). It took more than $180 billion to save AIG. This massive amount was more than what the Federal Government spent on Fannie Mae and Freddie Mac combined. The AIG sold off its international assets such as Alico, AIA and Nan Shan to pay back the Feds. Most recently, it sold 637 million shares it owned to raise money. Overall, the AIG has paid back $197.4 billion to the Feds. The tax payer profits from the AIG bailout to date account for $15.1 billion. The U.S. Government still owns 15.9 percent of the company stock which could bring more profits to the tax payers.
At the time of the bailout, the Congress was very critical of the company due to lavish spending and executive bonuses.