AIG Got Enough Yet?

We start to see more articulation regarding the reconstruction of insurance and financial mammoth American International Group, Inc. (NYSE:AIG) this morning with the announcement of how $40 billion of its total $150 billion bailout plan will be utilized.

For its $40 billion, the U.S. government gets preferred stock with a 10% interest rate, and “warrants to purchase about 53.8 million shares of common stock, or about 2 percent of outstanding shares,” according to the AP this morning.

Also, the Federal Reserve loan of $85 billion to AIG in late September - which some identify as the moment Wall Street began to panic about the credit crisis - will be reduced to a maximum capacity of “only” $60 billion.

OK, can we only start hearing from now on about how AIG is successfully putting itself back together with all this scratch?  That would be great.

American International Group, Inc.’s numbers haven’t been impressing anybody this year.  Aside from tremendous triple-digit negative earnings surprises, analysts continue to rain down earnings estimates for the company’s 4th quarter (ends 12/08), fiscal 2008 and fiscal 2009.  AIG also has a -1200% upside potential for its December quarter.

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