Government Prays a Bigger Sucker Is Out There: Jonathan Weil

Look through the footnotes in American International Group Inc.’s latest annual report, and you will see a long section analyzing the company’s ability to use past losses to offset future income-tax obligations.

The gist: AIG’s executives have gazed into their crystal ball and concluded that the company’s prospects don’t look good. That dim outlook may help explain why the U.S. Treasury Department seems so anxious to begin reducing its 92 percent stake in the bailed-out insurance company, after a 36 percent drop in AIG’s stock price this year.