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 17,084.49 33.74 0.20%
Nasdaq 4,830.47 19.68 0.41%
S&P 500 2,014.89 1.46 0.07%
Treasuries 2.10 -0.01 -0.43%
Data as of 6:02am ET
Company Price Change % Change
Alcoa Inc 10.26 -0.75 -6.81%
Bank of America Corp... 15.58 -0.17 -1.08%
Apple Inc 112.12 2.62 2.39%
EMC Corp 27.86 0.68 2.50%
Freeport-McMoRan Inc... 13.49 0.03 0.22%
Data as of Oct 9


Michael Dell is on the verge of the biggest tech deal ever. But he needs to raise a ton of debt before the market's next freakout. More

Federal Reserve Vice Chairman Stanley Fischer told CNN International anchor Richard Quest that concern's about China's slowdown is pushing back the Fed's decision to raise rates. More

Elon Musk recently called Apple a "Tesla graveyard" that hires all the employees he's fired. But now he says he doesn't hate Apple. More

Yes, the new chip-enabled credit cards are more safe than what used to be in our wallets. But they aren't bullet-proof against fraud. More