Surprise Ending in the A.I.G. Bailout Saga: It Actually Worked

From the Ny Times’ Dealbook:  “Some people just don’t like movies with happy endings.”  That’s what the White House said about Neil Barofsky, then the special inspector general for the Troubled Asset Relief Program, when he complained two years ago that the Treasury Department was fudging its math about its investment in the American International Group.

At the time, the Treasury Department said that it was likely to lose only about $5 billion on the bailout. Mr. Barofsky declared that the number was “manipulated” as part of a “publicity campaign touting the positive aspects of TARP” ahead of the midterm elections.

Fast forward to this week. The Treasury Department announced it planned to sell $18 billion of its A.I.G. stake, putting it on a path to actually turn a profit. It was a remarkable feat and one that nobody — including Treasury Secretary Timothy F. Geithner — anticipated four years ago at the peak of the crisis during the $180 billion bailout of the company....

More?  Check out http://dealbook.nytimes.com/2012/09/10/plot-twist-in-the-a-i-g-bailout-it-actually-worked/?ref=business