American International Group the company that received the largest amount of money from the U.S governments bailout money has posted a return to profit to the relief of their investors and the U.S government.
Knox Associates report that AIG share price has risen more that 10 percent today. Ending a losing streak of six quarters in a row.
Investors where happy with the results, many relieved that the company is finally turning itself around after being on the brink of bankruptcy. Insiders told Knox Associates that the rise in share prices has put a bounce in everyones step at the company, but many still remain cautious, as they are not out of the woods, but Knox Associates points out that is a good step in the right directions.
Knox Associates analysts believe the AIG stocks still holds some risks, as the company is still a major concern for the Federal Reserve. There are still many toxic assets in the company that need to be sold and if there was to be in major payouts due to natural disasters then the company will be stretched again.
Before the economic collapse AIG was by far the biggest insurance company in the world, the collapse of the sub-prime market saw credit defaults running into the billions that needed to be paid to banks around the world. AIG who are now mostly owned by the U.S government as they felt that it would be a global disaster if AIG collapsed.
Spokesperson from the U.S administration told Knox Associates that they where happy with this quarters profits, but warned that there was a very long way to go before everythings is back to normal.
