James McKee

Chase Manhattan Eyes Shares of AIG



Posted: Friday, January 14, 2011

by James McKee
http://www.forex.tradingcharts.com

In an effort to pay back on the massive bailout conducted by the US government a couple years ago AIG has begun massive selloffs of its shares.  Among the interested parties so far has been Chase Manhattan bank, who has expressed interest in a large portion of the 20 billion dollar selloff.

The upcoming selloff will be one of the ten largest in United States history, AIG has truly become a motivated seller as the weight of their debt to the US government grows heavier.  The burden of this debt will no doubt become unbearable as the economy pushes forward with little to no sign of going anywhere but down.  At this point the government owns more than 90 percent of AIG.

This ongoing policy of the United States government to bailout large companies such as AIG and mega banks such as Chase Manhattan is a trend that shows little sign of slowing down.  This is indeed a problem since these financially insolvent companies are only continuing to be a liability for the American government and thus the American taxpayers.

While keeping these companies afloat might keep economic hardship from hitting the American economy in the short term in the long term it is thought that things will be worse than before.  Those on the Forex currency exchange should keep a close eye on how bailed out companies in the US shoulder this debt in the coming years.  Continued selloffs of this caliber are sure to cause much financial upheaval in the US and abroad.
Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the forex exchange rates regularly.
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