Treasury to sell its remaining stake in AIG
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WASHINGTON -- The Treasury Department said Monday that it would sell its remaining ownership stake in insurance giant American International Group, effectively ending one of the largest bailouts of the financial crisis and turning a profit for taxpayers.
The sale of the Treasury’s remaining 234 million shares -- 15.9% of the company -- would add to the $15.1 billion in profit the government already has made on the bailout. The Treasury would still hold warrants in AIG after the stock sale.
At one point, the Treasury and the Federal Reserve committed more than $182 billion to AIG, in exchange for a 92% ownership stake, after the company nearly went bankrupt in 2008.
AIG ended up using about $125 billion of the bailout money.
The company has been selling assets to raise money to repay the government. On Sunday, AIG announced it was selling a majority stake in International Lease Finance Corp., its Century City aircraft leasing company.
A group of Chinese investors agreed to buy 80.1% of the company for about $4.23 billion. They have an option to acquire an additional 9.9% stake.
ALSO:
AIG in talks to sell aircraft-leasing company
Fed says taxpayers earned $17.7 billion from AIG bailout
AIG to sell Century City aircraft leasing firm to Chinese investors
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