Insurance mammoth American International Group, currently 80% owned by US taxpayers, has made progress toward internal restructuring and will likely have the capacity to buy back much of the governments share in the company, according to Moody Investor’s services on Monday.
AIG, which has recieved nearly $180 billion in federal aid, still plans to rely heavily on government support through its restructuring plan; however, provided its operations and glocal financial markets continue to stabilize, it's possible that they can engender enough value to reimburse the government.
Moody’s optimism is a prophecy of sorts, sending AIG’s shares up 3.7% to $37.52. The company posted a second straight quarterly profit this past week and quarterly results implying what Moody’s describes as “continued stabilization of the core insurance operations despite challenging market conditions.”
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