Posted on 09 Mar 2011
The U.S. Treasury said on Tuesday that American International Group (AIG) repaid another $6.9 billion of the money it received under Troubled Asset Relief Program (TARP).
This payment has resulted in the Treasury now recovering 70 percent of the $411 billion distributed under TARP.
AIG paid the Treasury $6.6 billion from the proceeds of its sale of shares in insurer MetLife, shares it acquired when it sold its international unit Alico to MetLife last year. AIG paid Treasury another $300 million in funds it had retained for expenses related to the Alico deal.
After those payments, the Treasury still holds about $11.3 billion in preferred interests in AIG. It also owns about 92 percent of AIG’s common stock.
At Tuesday’s closing share price, the sale of that stock would generate a profit for the taxpayer of about $14.22 billion. The Treasury said it expects taxpayers to recover “every dollar” of AIG’s bailout, which at one point swelled to $182 billion.