This week the federal government effectively nationalized American International Group by extending an $85 billion dollar loan to the struggling insurance provider.

But will taxpayers profit from this major example of public largesse?
Analysts believe the odds are pretty high that the rescue will be a good investment for taxpayers, with AIG paying off the loan at a relatively high interest rate of 11.5 percent, and the government potentially making money off its nearly 80 percent equity stake in the company.
In 1979, the U.S. guaranteed $1.2 billion worth of loans to the struggling automaker Chrysler. When the company rebounded four years later, the government reaped more than $300 million in profits.
AIG is a colossus on Wall Street and financial districts around the globe, with operations in more than 130 countries and $1 trillion in assets on its balance sheet.
Besides life, property and other insurance offerings, AIG provides asset-management services and airplane leases. Its myriad businesses are also linked to mutual funds, annuities and other retirement products held by millions of ordinary Americans.
The government is first in line to be paid back on the loan, which is backed by the assets of the entire company.