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Pros: Taxpayers Were Fleeced by AIG Pricing

On Wednesday you may hear that the taxpayers were made whole by the AIG secondary. But the Fast gang says don’t believe it. Irate is the only way to describe our market pros after CNBC’s Kate Kelly revealed in a live report that shares of AIG had priced at $29.

”I would have much rather seen them cancel the IPO at the 11th hour,” says trader Brian Kelly, than accept this price. "We've been absolutely torpedoed," adds Tim Seymour, "the entire country."

Guy Adami agrees entirely. If the stock trades $33-$34 on Wednesday there won’t be any outrage but there should be. “This stock was north of $50 in December. I feel like we’ve been fleeced. The S&P isn’t that much off its high for the year.”

As you likely know, the government took what amounted to a majority stake in AIG during the depths of the financial crisis, and with the secondary pricing at $29, it came in above the tax payer's break-even price of $28.70.

“The headline will be effectively that it was a success, that shareholders were made whole,” adds host Melissa Lee. That may be, replies Adami, "but the real story is that tax payers didn’t make nearly what they should have."

According to Kate Kelly, that may have been a concern. According to her sources there was, in fact, some serious contemplation of delaying the secondary for as much as 6 months “until the story was different and better.” But she adds the Treasury really wanted to get out. And given they have so much stock to sell, they wanted to get going.

Trader Joe Terranova just can’t imagine anyone wanting to get long. “What is this company,” he says. “It sold off all its crown jewels.”




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Trader disclosure: On May 24, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Adami owns (AGU); Adami owns (C); Adami owns (GS); Adami owns (MSFT); Adami owns (NUE); Adami owns (BTU); Terranova owns (XOM); Terranova owns (KSS); Terranova owns (CVI); Terranova owns (OXY); Terranova owns (TM) ; Terranova owns (BJ); Terranova owns (DIS); Terranova owns (PFE); Terranova owns (V); Terranova owns (HPQ); Terranova owns (FLX); Terranova owns (JPM); Terranova owns (MCD); Terranova owns (PEP); Terranova owns (VRTS); Terranova is short (DELL); Karabell owns (AAPL); Karabell owns (GOOG)

For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (CCG)
Virtus Investment Partners Owns More Than 1% Of (CASS)
Virtus Investment Partners Owns More Than 1% Of (CSVI)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (FCFS)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (KRC)
Virtus Investment Partners Owns More Than 1% Of (LDR)
Virtus Investment Partners Owns More Than 1% Of (NRCI)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLE)
Virtus Investment Partners Owns More Than 1% Of (XLF)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLK)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (SUBK)
Virtus Investment Partners Owns More Than 1% Of (WDFC)
Virtus Investment Partners Owns More Than 1% Of (YDNT)|
Virtus Investment Partners Owns More Than 1% Of DOMINO'S PIZZA UK & URL PLC
Virtus Investment Partners Owns More Than 1% Of (DRYS)

For Zachary Karabell
River Twice Capital is short (SHLD)
River Twice Capital is short (GS)
River Twice Capital is short SPY, QQQ

For Brian Kelly
Accounts Managed By Brian Kelly Capital are long (SLV)
Accounts Managed By Brian Kelly Capital are long (VLO)
Accouts Managed by Brian Kelly Capital are long (TLT) calls
Accounts Managed By Brian Kelly Capital are long (ANDE)
Accounts Managed by Brian Kelly Capital are long (MCP) calls
Accounts Managed By Brian Kelly Capital are long (TLT) Calls
Accounts Managed By Brian Kelly Capital are long Australian Dollars
Accounts Managed by Brian Kelly Capital are long (HOC) calls
Accounts Managed by Brian Kelly Capital are long yen

For Dan Dicker
**No Disclosures

For Colin Gillis
*No Disclosures

CNBC.com with wires.