Thursday, September 13, 2012

AIG bailout earns the government another $2.7B

Robert Benmosche, AIG's CEO, offers insight on the future of the insurance giant after paying off debt owed to the government at a profit to taxpayers.

By Associated Press

WASHINGTON --?The Treasury Department says it has received an additional $2.7 billion from the sale of American International Group stock. The sale comes one day after the government reported a profit on its four-year investment in the bailed-out financial firm.

Treasury says the banks underwriting the sale have exercised their option to buy 83.1 million additional AIG shares at $32.50. Together with Monday's $18 billion in stock sales, Treasury says the government has recovered a total $197.4 billion from the company. That's all of its original investment of $182.3 billion plus a return of $15.1 billion to taxpayers.

The sales cut the government's stake in AIG to less than 16 percent. At the height of the financial crisis, the government held a 53.4 percent stake in the company.?

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Source: http://bottomline.nbcnews.com/_news/2012/09/11/13810129-aig-bailout-earns-the-government-another-27b?lite

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