The Flaw In AIG's Escape Plan

American International Group Inc. AIG didn't think its plan to escape from Uncle Sam's clutches all the way through. According to the Wall Street Journal, ” … the Treasury Department is likely to convert $49 billion in AIG preferred shares it holds into common shares, a move that could bring the government's ownership stake in AIG to above 90%, from 79.8%…The common shares would then be gradually sold off to private investors, a move that would reduce U.S. ownership and potentially earn the government a profit if the shares rise in value.” Read the rest here.