AIG's 1-20 Reverse Split Not Working Miracles...

American International Group (AIG) did the 1 for 20 reverse split, hoping that would boost the stock price. Today is the first day that the stock is traded after the reverse split. So far, it is not working as they hoped.

AIG is currently trading at $18.79, or pre-reverse split price of $0.94, down 19% from Tuesday's close of $1.16. It is down 36% from Monday's open, which was $1.46.

The U.S. government has 79.9% stake in AIG, 0.1% short of 80% so that the government doesn't have to bring AIG's books on to the government's equally dismal books. So in two short trading days U.S. taxpayers lost about $20 billion. Nice trade, if you were shorting.

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