American International Group Inc. wound up getting about $125 billion from the U.S. government in the complex bailout

January 8, 2013

The people who were investors would of done better to of gone bankrupt and sold the toxic assets for what they were worth

(Mark Lennihan / AP Photo)(WASHINGTON)AIG is said to consider suing U.S. for bailout that saved company. At the same time American International Group Inc. has been running high-profile ads thanking America for the bailout that saved the company, the insurance giant reportedly is considering joining a shareholder suit against the U.S. government for the rescue.

The AIG board will meet Wednesday and could decide to join a $25-billion suit led by former chief executive Maurice “Hank” Greenberg, the New York Times reported.
The suit by Greenberg’s Starr International Co. alleges that the 2008 bailout of AIG by the Treasury Department and Federal Reserve Bank of New York in which the government received an 80% ownership stake in the company violated the rights of shareholders. The ownership stake later climbed to 92%.
The suit in the U.S. Court of Federal Claims in Washington alleges that the bailout cost shareholders billions of dollars and violated the 5th Amendment, which prohibits the taking of private property for public use “without just compensation.”
A similar suit against the New York Fed was thrown out by a New York federal judge in November. But Judge Thomas Wheeler of the Court of Federal Claims had ruled in September that Greenberg’s case against the U.S. government could go forward.
A September court filing said the AIG board expected to make a decision by the end of January.
An AIG spokesman declined to comment Tuesday. A Treasury Department spokesman also would not comment.
But U.S. officials would not be pleased if AIG joined the suit. The company received the single largest bailout of the financial crisis, leaving the government on the hook for more than $182 billion.
AIG ended up taking about $125 billion in the complex, multi-step bailout. In the process, the company became the poster child for reckless risk-taking on Wall Street and the focal point for anger by the public and lawmakers over the unprecedented government intervention to save the financial system.
In December, the government sold the last of its stake in AIG. The bailout formally ended with the taxpayers earning a $22.7 billion profit, though critics noted there were additional, incalculable costs, such as a loss of public confidence in the financial system and a precedent for rescuing too-big-to-fail financial firms.
AIG has been touting the end of the bailout with print, TV and online ads titled “Thank You America.” The ads, which have aired in recent weeks during college football bowl games and National Football League playoff games, note the company “repaid every dollar America lent us.”


The Jewish Businessman Who Beats Warren Buffet At His Own Game

November 23, 2012

bruce-berkowitzA little-known Miami-based finance guru, who 10 years ago set up a mutual fund to mimic the value investing style of his hero, Warren Buffett, had outperformed the Oracle of Omaha over the decade — and by a wide margin. Bruce Berkowitz, who owns and runs the $8.6 billion Fairholme Fund has averaged a whopping 12 percent annual return since he opened its doors Dec. 29, 1999. Buffett, who invests through his Berkshire Hathaway conglomerate, has posted an average annual return of 23 percent over a 30-year period ending in the 1990s, but has returned just 3 percent annual returns over the last decade.
By comparison, the S&P 500 index has averaged a 2 percent annual decline over the last 10 years.
How has Berkowitz, a longtime financial professional with little or none of Buffett’s love of the spotlight, bested his hero?
Well, for starters, he cashed in on highly profitable sectors — like financial and energy stocks — and knew when to bolt.
“He got into financials [early in this decade], made a lot of money and then got out before they blew up,” said Michael Breen, an analyst with Morningstar. “He did the same with energy stocks in early 2002, then got out before they had problems.”.
By contrast, Buffett stayed too long at the financials and energy party and was burned.
Citing Buffett’s refusal to own technology stocks in the 1990s, Berkowitz says he ran away from a lot of financials for the same reason: “I couldn’t understand them. I couldn’t understand the assets. I couldn’t even understand if some of them belonged to the government or not,” he said.
Buffett, said analysts, has also done something else Berkowitz has avoided: Berkshire Hathaway has become an investment behemoth and that has compromised its nimbleness.
That means it has lost some of its ability to buy bargains quietly. Indeed, Berkowitz says size is why he is doing better than Berkshire Hathaway.
Married, with three kids, Berkowitz has no desire to become the next Warren Buffett media darling.
“I do not enjoy doing television,” he said, trying to explain how someone can post such a stellar record compared to the renowned Oracle of Omaha but not get that much face time on TV. “I do as little as possible.”
“You mean no one has offered $1.6 million to have lunch with you?” he was asked, a reference to the most recent annual have- lunch-with-Warren auction’s winning bid.
“Why would anyone offer me a thousand dollars for that?” he asked.
{NY Post/ Newscenter}

This guy owns a lot of AIG. The company has seen its investor stake increase with money with the likes of George Soros himself. This is the company the country bought into and put on corporate welfare. Supposedly Berkowitz invests in Jewish history. What is it that he is buying? does anyone know anything about Berkowitz? I’m not saying he’s a bad guy… I don’t know him. I just would like to know who he is and what interest he has in Jewish history. What kind of Jewish history is this guy banking?