Tom Reese/Paul Rubillo, Dividend.com
American International Group (AIG) just announced it closed a $40 Billion stock placement with the Treasury.
The Treasury bought 4 million of AIG's Series D preferred shares and a warrant to buy common stock equaling 2% of the company on the date of the investment. The preferred shares pay 10% annual interest.
The Bottom Line
The government is continuing the practice of throwing dollars at companies that were players in the economic collapse. There seems no end to what the printing presses can produce, as well as the debt the taxpayer will endure for decades to come.
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