Treasury Receives $972 Million Repayment from AIG
American International Group on Monday repaid $972 million to the U.S. Treasury. The latest repayment brings the insurance giant’s outstanding balance from the 2008 taxpayer-funded bailout down to roughly $68 billion.
The government provided AIG with $182 billion at the height of the 2008 financial crisis. Treasury has recouped $18 billion of the $68 billion it provided the company through the government’s Troubled Asset Relief Program.
The rest of the money came from the Federal Reserve. AIG has repaid all but $17.5 billion of those loans.
The government still owns 77 percent of AIG’s common stock. While the government made an initial sale of AIG stock last May, the expectation is that those stock sales will not resume until the value of AIG shares increase in value. AIG stock has lost nearly half of its value this year.
AIG stock closed Tuesday at $23.42. That is below the $28.72 price where the Treasury would be able to recoup all of its investment in AIG.
The head of AIG said in a statement that Tuesday’s repayment marked the latest milestone in the effort to repay taxpayers.
“We continue to make steady progress toward our goal of America’s taxpayers recouping their entire investment in AIG. I am confident that AIG’s employees will continue to work hard so we can achieve this goal,” said AIG President Robert H. Benmosche.
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