CEO Bob Benmosche said in Nov 2011 that AIG was running at a $4billion loss for the year still has to pay back the US Treasury.

AUGUST 2010: French and German banks were the biggest beneficiaries of the US government's $70bn capital injection into AIG. Assets Relief Programme (TARP) said Banks including Societe Generale and Deutsche Bank benefited in part from $105bn of counter-party payments from AIG, payments which would not have been made had the US government not stumped up as much as $182.5bn in total federal aid to stabilise the insurer. Instead of asking for help from othert countries the USA tried to shore up on their own pumping and printing money top assist these companies. The Treasury has never found where these funds actually went to??? MARCH 2009 REPORT: The revamped rescue plan -- now totaling $162.5 billion -- commits another $30 billion to AIG. The payment will come from the second half of the $700 billion rescue package enacted last fall.   WHO IS AIG: American International Group was the largest insurance company in the United States before it suddenly collapsed in September 2008 under the weight of bad bets it made insuring mortgage-backed securities. The company was bailed out by the Federal Reserve, but even after that $85 billion infusion, losses continued to mount and in November the Treasury announced a new rescue package that brought the total cost to $150 billion. Much of the company, an assortment of businesses that run the gamut from aircraft leasing to life insurance for Indians to retirement plans for elementary schoolteachers, remained profitable. But that could not offset losses, primarily from one London based unit, that reached $25 billion for the third quarter. Given A.I.G.'s size and the complexity of its deals, federal officials decided that a bailout was preferable to the havoc in international markets that would likely follow bankruptcy. The company's complex structure and aggressive approach reflects the determination of the man who built A.I.G., Maurice R. Greenberg, to create an global empire operating in complementary businesses. Not even the company’s annual reports to shareholders or its regulatory filings offer a chart of its complex corporate structure. Though its name is American, the company is rooted in Asia. According to company lore, its founder, Cornelius Vander Starr, a World War I veteran, traveled to Asia with only 300 Japanese yen (less than $3 today) in his pocket and started the firm in Shanghai in 1919. With a partner, he sold marine and fire insurance and expanded rapidly throughout the Philippines, Indonesia and China by hiring locals as agents and managers, a business strategy A.I.G. uses today. Nearly half of A.I.G.’s 116,000 direct employees — about 62,000 people — are in Asia. Mr. Greenberg joined the company in 1960. He focused on making giant commercial deals, increasing its share of the life insurance business and writing what were, decades ago, unusual types of coverage, like insurance against kidnapping and protection from suits against a company’s officers and directors. A.I.G.’s problems rest in the company’s London-based financial products unit, part of its financial services group, which is exposed to securities tied to the value of home loans — the same kind of securities that forced Lehman Brothers into bankruptcy proceedings the day before A.I.G. was bailed out. The financial products group sold credit-default swaps, complex financial contracts allowing buyers to insure securities backed by mortgages. Many of the buyers were European banks. As home values have fallen, the value of the underlying mortgages has declined, and A.I.G. has had to reduce the value of the securities on its books. The company's distress came after an unusual period of turmoil at the company.Early in 2005, questions arose about financial transactions that had the effect of making the company’s earnings look better. Mr. Greenberg resigned as chief executive after regulators sent a wave of subpoenas to the company; eventually A.I.G. restated earnings covering a five-year period. His successor tried to restore confidence in the company but his efforts did not meet with investor approval and he was replaced after the company announced that it lost $7.8 billion in 2008's first quarter.. In September the main financial ratings agencies made clear that they would downgrade A.I.G. ratings if the company were not able to raise more capital to back its obligations. A frantic scramble for investors was unsuccessful, leading a reluctant Fed to conclude that a bailout was unavoidable. The new bailout announced in November included an easing of the terms for the cash infusion and a plan to use $50 billion in government funds to take the most toxic assets off of A.I.G.'s balance sheet. The new AIG package includes a $40 billion chunk of the $700 billion financial bailout. It's the first time money from the big rescue bill has gone to any company other than a bank. American International Group Inc. got a $150 billion government rescue package, almost doubling the initial bailout of less than two months ago as the insurer burns through cash at a record rate.    The original $85 billion loan was disclosed on Sept. 16, a day after investment bank Lehman Brothers Holdings Inc. was allowed to collapse. AIG got an additional $37.8 billion credit line on Oct. 8 to shore up its securities-lending program $20.9 billion on Oct. 30 under the Fed commercial paper program designed to unlock short-term debt markets.    The Treasury will buy the newly issued preferred shares from the insurer using the agency's $700 billion Troubled Asset Relief Program, a financial rescue package that Congress passed in early October. The company agreed to turn over a 79.9 percent stake to the U.S. in exchange for the initial loan in September Source: NY Times. 2009 Obama is saying as we say the Recession was caused by the finance and banking execs who paid themselves large amounts of bonuses & salaries. These & their board of directors are the ones to blame to the financial collapse. Check out Pattaya/Bangkok Shipping & Transport services Its wake up time America. These bailouts are not helping the American people just Companies who have reaped millions in rewards and done nothing to change their strategies over the years. None of them deserve bailouts and the US government cannot run these joints??? so the underlying question is how much of thise bail out money will be spent on themselves---- most of it so watch. BANKRUPTCY UNDER CHAPTERS 7 & 11 Chapter 11 of the Bankruptcy Code means to "reorganize" the company and try to become profitable. Management continues to run the day-to-day business operations but business decisions must be approved by a bankruptcy court. Under Chapter 7, the company stops all operations and goes completely out of business. A trustee is appointed to "liquidate" (sell) the company's assets and the money is used to pay off the debt, which may include debts to creditors and investors. The investors who take the least risk are paid first. eg secured creditors take less risk because the credit that they extend is usually backed by collateral, like a mortgage or other company assets. They know they will get paid first if the company declares bankruptcy. Bondholders have a greater potential for recovering their losses than stockholders, because bonds represent the debt of the company and the company has agreed to pay bondholders interest and to return their principal. Stockholders own the company, and take greater risk. They could make more money if the company does well, but they could lose money if the company does poorly. The owners are last in line to be repaid if the company fails. Bankruptcy laws determine the order of payment.