The hope of American taxpayers to obtain restitution of the rescue of Bear Stearns and AIG, which cost the country billions of dollars, be increased yesterday after the Federal Reserve reported capital gains from assets purchased from both companies. Increasing the value of mortgage bonds, which caused the collapse of Bear Stearns and AIG stood on the brink of bankruptcy has led to a capital gain of all three investment schemes, which are concentrated assets of both companies, reports Financial Times. Accounting profit, which the Fed reported in the three schemes, known as Maiden Lane I, II and III, demonstrated an increase in the value of the securities, which were recently described as “toxic”. This can lead to decay of the criticisms of the central bank of the billions that were off to rescue the financial system from collapse. According to official data, lost profits or the difference between the market value of securities and loans granted by the government to purchase, was 10.8 billion dollars on Wednesday, the newspaper added. Two of the investment schemes were designed to remove problem assets from the balance of billions of dollars of AIG. They have been profitable for quite some time, while the third – that in which they were collected at the bad assets of Bear Stearns, just out of a plus.
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The Government aid to rescue American International Group (AIG) could cost taxpayers 2.9 billion to less than ever envisaged after the company’s prospects have improved, announced today Ministry of Finance of the USA. According to the ministry, the estimated costs of AIG fell slightly due to its increased financial stability, “reported Bloomberg. Saving the company is expected to cost the Ministry of 45.2 billion dollars database by the end of March, compared with 48.1 billion projected last November. The rescue plan for New York-based insurer had a total value of 182.3 billion dollars and comprised 69.8 billion from the Treasury, a credit line worth 60 billion from the Federal Reserve and purchase of mortgage assets owned or guaranteed by AIG to amount to 52.5 billion. Last month, the CEO of AIG Robert Benmoshe said the company is on track to repay any aid granted after reaching agreements to sell two of its subsidiaries for about 51.5 billion dollars, which is expected by the end of year. In March did it was announced that this year will receive Benmoshe wage of $ 7 million. AIG reported a profit of 1.45 billion dollars for the first quarter of 2010, and its subsidiaries for consumer finance and leasing of aircraft again given access to credit markets. In today’s trading AIG shares rose 4.9 percent as of the beginning of the year increased by 22%. Last year they lost 4.5 percent after having collapsed in 2008 with 97 percent – the year that AIG had to be saved.
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Mergers and acquisitions worldwide are gaining momentum in the first quarter of the year in the last three months were made over 2 thousand cross-border acquisitions and hostile takeovers 10. To contribute to this recovery in the global economy and stock market rally over the past 12 months. The value of takeovers increased by 5% annually during the first three months of this year to 498.24 billion dollars, cited by Bloomberg. Hostile acquisitions recorded growth of over 300 percent to 17.46 billion dollars. According to Mark Sharif, head of the Department of mergers and acquisitions for Citigroup, acquisitions may increase by 15-20% by the end of this year, provided that the global economy to shrink again. Last year, the realized value of acquisitions fell by 27 percent to 1.8 trillion. dollars, which is the lowest level for the past six years. Citigroup is one of the largest consultants in this field, she managed the sale of Asian life insurance unit of AIG, which was bought by Prudential of Britain’s 35.5 billion dollars earlier this year. It is the biggest deal in the market of mergers and acquisitions this year. Among the biggest deals this year and became hostile takeover of British chocolate maker Cadbury on the U.S. food manufacturer Kraft Foods. After four tense battle Cadbury has been absorbed by Kraft Foods for an amount of 21.4 billion dollars in February this year.
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