American International Group announced they have finalized a repayment plan with the Treasury Department. Mark Williams, a former Federal Reserve Bank examiner who now teaches finance in the School of Management and author of “Uncontrolled Risk” about the fall of Lehman Brothers, offers the following view.
“The Treasury would be jumping the gun by cashing out of AIG and leaving money on the table. The government should sit tight, be patient and not sell its shares in AIG. This is not about government timing the market, but about insuring a fair return for taxpayers.
“The Treasury is making the same mistake it did with Citigroup – getting out too early. Could the November election cycle be clouding what should be a purely financial decision?”
Contact Mark Williams, 617-358-2789, firstname.lastname@example.org