Treasury’s AIG Stock Sale Raises Return to $22.7B
The U.S. Department of the Treasury announced that it has agreed to sell all of its remaining 234.2 million shares of American International Group (AIG) common stock at $32.50 per share in an underwritten public offering. The aggregate proceeds to Treasury from the common stock offering are expected to total approximately $7.6 billion.
Giving effect to this offering, the overall positive return on the Federal Reserve and Treasury’s combined $182.3 billion commitment to stabilize AIG during the financial crisis is now $22.7 billion. To date, giving effect to the offering, Treasury has realized a positive return of $5.0 billion and the Federal Reserve has realized a positive return of $17.7 billion.
The Treasury noted in the news release, that more than 90% ($380 billion) of the $418 billion funds disbursed for TARP have already been recovered to date through repayments and other income.
To read the U.S. Treasury Department news release, click here.