This on Treasury’s pending sale of AIG stock, from the Washington Post, made me laugh:
The remaining federal commitment consists of the Treasury Department’s majority share of AIG stock. There’s good news on that front, too: On Wednesday, Treasury announced that it plans to sell $6 billion worth of its stake. Cleverly, Treasury sold about half of that amount back to AIG; this gave Treasury an alternative to merely dumping shares on the market and so boosted the price it could command on behalf of taxpayers. Wednesday’s sale reduced the taxpayers’ stake in AIG to $35.8 billion, at the current price of roughly $29 per share.
The implication, of course: AIG is willing to pay more for its stock than the open market. Either the Washington Post is being a bit dim or AIG directors better check their D&O cover.