Moody's Investor Service (MCO) analysts said on Monday that American International Group Inc. (AIG) will probably have the ability to fully repay the bailout money and buy back much of the government's stake in the company as it continues to stabilize its core insurance operations and progress on its restructuring plan. AIG, which received about $180 billion of federal bailout including more than $80 billion in loans, has also been working for the last several quarters to sell assets and streamline its operations in an effort to repay the bailout money. U.S. taxpayers now own 80% of the company. During the third quarter, AIG remained profitable for the second consecutive quarter. The company’s third-quarter operating earnings of $1.9 billion ($2.85 per share) were substantially ahead of the Zacks Consensus Estimate of $1.20. This also compares favorably with the operating loss of $9.2 billion or $68.36 ...

American International Group Inc. (AIG) said on Friday that it is paying $12.1 million in retention awards to some of its top executives. The company took this decision after it got approval from U.S. pay czar Kenneth Feinberg, who is scrutinizing the pay practices of the seven companies including AIG that received the biggest federal aid.   Chief Financial Officer David Herzog received $1 million and Kristian Moor, Chief Executive of AIG's property-casualty division, received $1.6 million. Jay Wintrob, CEO of AIG's domestic life and retirement services also received a payment. The payments were promised in 2008 to retain key employees.   Previously, U.S. Treasury Department pressed AIG to reduce $198 million in scheduled retention payments after the government missed the opportunity to defend against controversial bonuses paid to AIG employees last year.  However, AIG is currently trying to repay $85 billion it had borrowed from the ...

Citigroup Inc. (C) could be compelled to sell its profitable and highly rated Mexican subsidiary Banamex due to a probe expected this week by Mexico’s Supreme Court. A group of senators has objected that Citigroup’s Mexican subsidiary is in breach of national law since the US government bail-out of the company. National law of Mexico bans foreign governments from owning a stake in domestic banks. Banamex, or Banco Nacional de Mexico, is one of Citigroup's brightest jewels, and accounts for over $20 billion, or 15% of its global profits. A number of other foreign-dominated banks operating in Mexico also remain exposed to the same risk, as many foreign governments own stake in them following the global financial crisis. These banks include American International Group, Inc. (AIG), Bank of America Corporation (BAC) and Bank of New York Mellon Corporation (BK), as well as ...

According to an overseer's report released on Tuesday, the U.S. Treasury Department is pressing the bailed out insurer American International Group Inc. (AIG) to reduce $198 million in scheduled retention payments after the government missed the opportunity to defend against controversial bonuses to AIG employees last year. The special inspector general of the government’s $700 billion bailout program, Neil Barofsky, said that Treasury official Kenneth Feinberg has not specified the amount by which retention payments should be reduced. Feinberg is supervising pay practices at seven companies, including AIG, which received extraordinary government assistance. Though all the firms that received bailout money are subject to limits on their compensation practices, for these seven firms the situation is critical due to the special assistance they received from the Treasury. The seven firms whose compensation plans are under scrutiny are American International Group, Citigroup (C), Bank of ...

In the course of the review of the aptness of the richest pay packages proposed by seven financial firms that received $200 billion in government aid, the U.S. pay czar Kenneth Feinberg is planning to cut the annual cash salaries for many of the top executives whose firms accepted bailout funds. As an alternative to paying large cash salaries, the pay czar is planning to shift a large portion of an employee's annual salary to stock that cannot be accessed for several years. The percentage of salary to be diverted to stock is not yet clear, but it could be above 50% in some cases. The stock compensation would be in addition to salaries and cash bonuses. This will be an incentive for the executive to make good long-term decisions about the company. By mid-October this year, Feinberg expects to issue his judgment on compensation packages ...

Billionaire investor George Soros said yesterday (Monday) that the U.S. recovery would be a slow one because of all the “basically bankrupt” financial companies impeding it.

U.S. Federal Reserve Chairman Ben S. Bernanke and Congress agreed Friday that the financial system – not the American taxpayer – should bear the costs of bank bailouts. Sheila Bair, head of the Federal Deposit Insurance Corp. (FDIC), wants the banks to ante up $45 billion – three years’ worth of deposit-insurance premiums – to bail out the fund that insures bank deposits.

When it comes to bank stocks, we all know that there were a number of Money Morning readers shrewd enough to buy Citigroup Inc. (NYSE: C) shares when the foundering giant’s stock price was below $1 a share.

If you’re one of those investors, good for you: With Citi’s shares now trading at nearly $4.70 a share,

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There really are few options for short term high yield cds, as you know the Masters prefer the 3, 6, or 9 month options.  About the only enticing offer we could find this week comes from AIG Bank, that's right, they are part of that lovely company American International Group, Inc. (NYSE:AIG) which American taxpayers coughed up $182 billion to bailout. Ah, bailout, sch-mailout, what we care about are decent ...

After being significantly hurt by the economic downturn, the first wave of deals to stabilize the aircraft leasing industry is now on its way. Dutch aircraft leasing firm AerCap Holdings (AER) said on Friday it would buy Genesis Lease Ltd. (GLS) in an all-stock deal worth $302.6 million for greater scale and access to more funds for aircraft purchases.

The weak market condition has created the necessity for such consolidation. The combined entity will create the largest publicly listed aircraft leasing company, controlling about 5% of the total leased market. With 358 commercial aircraft and 83 engines that are either owned, on order, under contract or letter of intent, or managed, the combined company is expected to significantly contribute to the recovery of the industry. It will also have 116 airlines as clients, with a lease portfolio value of about $6 billion.

According to the deal, Genesis

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Here are the stocks added to the Zacks #5 Rank ("strong sell") List today:

Acuity Brands Inc (AYI) Administaff Inc (ASF) Advanta Corp (ADVNB) Aetna Inc (AET) American International Group Inc (AIG) Ametek Inc (AME) Belden Inc (BDC) Conmed Corp (CNMD) Developers Diversified Realty Corp (DDR) Dun & Bradstreet Corp (DNB) Exterran Holdings Inc (EXH) Flir Systems Inc (FLIR) FMC Corp (FMC) Gardner Denver Inc (GDI) Granite Construction Inc (GVA) The Hain Celestial Group Inc (HAIN) Harsco Corp (HSC) ...

American International Group Inc. (AIG) has reached an agreement to sell a part of its investment advisory and asset management business to Bridge Partners, L.P. for about $500 million. Bridge Partners, LP is owned by Hong Kong-based private-equity firm Pacific Century Group. The $500 million purchase price includes a cash payment of about $300 million at closing, plus future payments consisting of a performance note and a continuing share of carried interest. The units being sold operate in 32 countries and manage about $88.7 billion of investment of institutional and retail clients. However, AIG will retain its in-house investment operation that manages approximately $480 billion of assets. Win J. Neuger will carry on as Chief Executive Officer of the new business. The existing management team will also remain in place. AIG’s financial advisor was UBS Investment Bank of UBS AG (UBS) while for Pacific ...