Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

AIG slips back into the red

chart_ws_stock_americaninternationalgroupinc.top.pngClick chart to track AIG shares. By Charles Riley, staff reporter


NEW YORK (CNNMoney) -- AIG reported a first quarter loss Thursday, moving the insurer back into the red after the bailout recipient showed signs of life with a strong final quarter to close out 2010.

AIG reported a loss from continuing operations of $1.41 per share for the first three months of the year, compared to a profit of $2.16 per share over the same period a year ago.

For U.S. taxpayers, the loss is bad news. Here's why: The Treasury Department owns a 92% stake in AIG (AIG, Fortune 500), the result of a 2008 bailout of the too big to fail insurer.

In 2008, the giant insurer struggled under the weight of credit default swaps issued by its Financial Products division before ending up on the receiving end of a $180 billion lifeline extended by the Feds.

AIG has returned a large chunk of that to the Treasury, raising money through asset sales. But Treasury still has $47.5 billion in cash invested in AIG through the insurer's common stock.

Due to a plunging stock price that has lost 46% of its value since the start of the year, that taxpayer investment is in danger of slipping into the red.

The breakeven stock price for that investment is around $29, just a few dollars below where the stock has been trading in recent weeks.  To top of page

Index Last Change % Change
Dow 22,343.09 -6.50 -0.03%
Nasdaq 6,388.90 -38.02 -0.59%
S&P 500 2,498.81 -3.41 -0.14%
Treasuries 2.25 -0.01 -0.44%
Data as of 9:38am ET
Company Price Change % Change
Comcast Corp 38.10 0.63 1.68%
Wells Fargo & Co 54.25 0.19 0.35%
Mondelez Internation... 40.05 -0.14 -0.35%
Pfizer Inc 35.96 -0.01 -0.03%
Regions Financial Co... 14.42 -0.01 -0.07%
Data as of Sep 22

Sections

The shutdown, which raised protests from navigator groups, will occur from midnight to noon on on all but one Sunday. More

Uber's new CEO issued an apology to Londoners on Monday just days after city officials said they would not renew the company's license. More

When you're making big career decisions, you turn to your mentors and your trusted peers. But how do you find these mentors and trusted peers in the first place? More