U.S. Treasury Profit on TARP shares of AIG is $22.7b


American International Group Inc. (AIG)’s rescue has come to an end with the U.S. raising $7.6 billion in its final offering of the insurer’s shares, four years after a bailout that fueled resentment against Wall Street.

The Treasury Department is selling 234.2 million shares at $32.50 each in the sixth offering since the 2008 rescue. The proceeds boost the U.S. profit on the rescue that began in 2008 to $22.7 billion, according to a statement today from the Treasury, which injected capital through the Troubled Asset Relief Program.

source: U.S. Profit on AIG Climbs to $22.7 Billion on Share Sale – Businessweek.

TARP was not the issue. the lax regulation up front was.

I sincerely hope that 2nd term Obama, Elizabeth Warren and banking committee Dems can make headway on this: the cookie jar has to be watched. AIG’s investment arm shouldn’t be able to use state regulated exchanges as ATMs, bank FDIC insurance payments shouldn’t be suspended (ever) and banks and their credit products should be forced to comply with basic credit agreement law. I also hope there is some kind of Fannie/Freddie wind down or wind out. A lot of the mess was pushed on to those quasi-government companies.

What we know is when cash rich companies have violated some law, they can litigate until the cows come home. So now the DOJ has a settlement party instead of investigating fraud because they are afraid of long protracted trials where no one who was ever affected is made whole.