AIG Substantially Profitable Under Benmosche

AIG had a great operating quarter,said Robert Benmosche(pronounced Benmoshay),CEO of the insurance titan,with a 1.56 billion dollar profit.All of the operating units have been performing well.Thailand lost 368 million-a little above what we'd like to see,but Japan was the big problem,in the wake of payouts for the countries' 2011 natural disasters.
We see the U.S. economy as being pretty strong.Jobs and housing are doing better.We're pretty optimistic about 2012.
Our job is to build a great company.We're gonna focus on the owner who wants to hold the stock for a long time.We're working hard for our shareholders,clients and employees.
The government wants to get out of AIG as prudently and as quickly as they can.They feel they should be able to sell that stock at break even or a profit for the taxpayers.
People still need to save for their retirement.The annuities are selling reasonably well in this market.We provide the public with certain guarantees.We'll take care of that volatility.
Unfortunately,I have cancer,but I'm enjoying what I'm doing.There's no guarantee,but I'm gonna keep going until I can't.I'm feeling good.The doctors are working on some stuff,the tanned and fully bearded Robert Benmosche revealed.He agreed to lead the recovering insurance company in 2009.
Mr.Benmosche,67,had been CEO of Metropolitan Life.The married father of two,a New York native,has been treated with aggressive chemotherapy for an undisclosed type of cancer.
American International Group(AIG),Metropolitan Life(MET)

The End or Beginning

The cost of credit has started to ease,Mr.Geithner informed the U.S. Senate.Businesses are finding it easier to raise money in the capital markets.This is all welcome news,but I want to emphasize this is just the beginning.We still face a prolonged repair and adjustment.The combined effect of the programs will help.We're working very closely with the Small Business Administration.Refinancing of commercial real estate is a major challenge.The best thing we can do is 1.provide capital where it is necessary;and 2.have the Federal Reserve extend lending to Commercial Mortgage-Backed Securities,or CMBS.These are two very important steps to take.
About half the AIG risk has been taken down.To be fair,the management of this firm is finding it incredibly difficult to disentangle the businesses.Our options were substantially constrained by the complexities of this firm,Tim Geithner pointed out.Wearing a charcoal suit,white shirt and blue striped tie,the Treasury Secretary maintained his composure and seriousness through the intense exchanges with the demanding senators.

Geithner Briefs Senate Panel

Treasury Secretary Tim Geithner has been briefing the Senate Banking Committee on the current situation.We are looking at ways to get more capital into community banks,he said.Unless we are prepared to contemplate the risk to the system of default by AIG,we have no choice but to fund it.I believe what Congress did at that point was absolutely essential.The bleeding has slowed substantially from the height of the financial crisis.It will take longer than a year for the government to exit AIG.
Demand for credit is falling as businesses repair their balance sheets,Mr.Geithner observed.The expansion of the Targeted Asset-backed securities Loan Facility,or TALF,to a wider range of securities will help repair capital markets.The government has unwound about half its risk from AIG financial products.The demand for credit is greater than what looks like the available supply.We have somewhat north of 100 billion of capital to get credit flowing again.We've got a pretty effective series of programs in place,but they're just getting started,and we have to keep at it,Mr.Geithner admitted.