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Friday, February 24, 2012

Bailed-out insurer Posts $19.8 billion profit for the fourth quarter-profit on tax benefit

These criminals paid out almost 200 million in BONUSES 2011 - including $1 million or more to each of 73 employees, including 11 who no longer work for the company How long are we going to put up with this? 

(Reuters) - Bailed-out insurer American International Group reported a $19.8 billion profit for the fourth quarter, after an accounting change that allowed the company to record an enormous one-time benefit.

The move, which sent the company's shares up by about 6 percent, essentially means AIG will not pay tax on tens of billions of dollars in income in the coming years, thanks to benefits that stem from its financial crisis-era losses.

AIG said in the third quarter that its results in the fourth quarter would determine whether it could release a so-called valuation allowance against the tax assets.

Having determined it is more likely than not to be consistently profitable in the future, it released most of the allowance, nearly $17.7 billion, in the quarter.

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