Bailed-Out AIG Reports $1.8 Billion Profit

For the first time since 2007, AIG on Friday claimed a profit. The insurance giant reported second-quarter net income of over $1.8 billion. That's still just a fraction of the $180 billion that AIG received as part of a government bailout in 2008. AIG's chief executive claimed that the profits demonstrated "stabilization," while acknowledging that parts of the company were still troubled.

News of AIG's gain comes as the federal government is again looking at ways to deal with serial problem children Freddie Mac and Fannie Mae, also beneficiaries of a large bailout -- more than $85 billion. The Washington Post reported Wednesday that one proposal under consideration was turning over to the government bad assets weighing down the companies. The White House responded that this was just one of several proposals being tossed around and that the idea had not made it past the earliest stages of internal discussions.

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