During the past month, AIG stock fell nearly 10% drop after an announcement that the government would sell some of its stake in the insurance giant. The Treasury's ownership in the company has declined from 92% to 77%, but the prospect of its future sell-offs are holding the stock down.
Citigroup on Wednesday announced the promotion of John Havens, the head of its Institutional Clients Group, to president and chief operating officer. The move is designed to make the financial behemoth nimbler by cutting the number of executives who report directly to CEO Vikram Pandit.
Insurance giant American International Group on Wednesday signed an agreement with the government that details its plan to repay its government loans. Meanwhile, The Wall Street Journal reports that the government plans to sell much of AIG's stock in the next few months.
The Citigroup bailout is officially over: The U.S. Treasury has sold the last of its shares of the bank. Overall, the U.S. government netted $12 billion in profit from the $45 billion bailout.
Following General Motors' historic return as a publicly traded company Thursday, President Obama said the U.S. government, despite the many critics, is on track to more than recoup the nearly $50 billion it invested in the Detroit automaker.
Fiat is still planning to spin off the American carmaker late next year, but the road to an IPO could be bumpy.
Institutional demand for American International Group's $15 billion initial public offering for AIA, its Asian life insurance unit, is so strong that AIG may close it to institutional buyers two days earlier than planned.
The Federal Reserve chief warned Monday that the government must figure out how to shrink huge budget deficits, which now pose a "real and growing" threat to the U.S. economy.
The U.S. Department of the Treasury announced Thursday that it has sold all of the trust preferred Citigroup shares it held for a net profit to the taxpayer of $2.246 billion. In addition, Treasury also announced it sold 1.5 billion shares of Citigroup common stock, according to a plan announced in July, lowering its stake in the bailed out bank from 18% to 12.4%.
The Irish government is working to take majority control of one struggling troubled lender and to inject yet more cash into another. The moves could push the cost of Ireland's bank bailout to as much as $68 billion. "The Irish banking system is at rock bottom," one expert says.
American International Group's board of directors is expected to vote Wednesday on a plan to exit the government's bailout program, according to comments made by AIG Chairman Steve Miller during an investment conference.
At an anticipated $16 billion, General Motors' pending initial public offering was expected to be the second largest in history. Now, the No. 1 U.S. automaker is revising IPO expectations downward, anticipating it will bring in $8 billion to $10 billion when shares go public in November.
