The Joplin Globe, Joplin, MO

Business

August 6, 2012

Treasury to receive $750M more from AIG stock sale

WASHINGTON — The government says it expects to receive $750 million more from the latest sale of stock held in American International Group. The sales are part of an effort to recoup taxpayer money from the largest bailout of the 2008 financial crisis.

The Treasury Department says the banks underwriting the sale have exercised their option to buy 24.6 million AIG shares at the offering price of $30.50 each. That brings the total from the fourth round of sales in AIG stock to $5.75 billion. Treasury announced last week that it sold $5 billion in AIG stock.

Treasury says it has received $23.3 billion from four sales of AIG stock.

Treasury and the Federal Reserve stepped in with $182 billion to rescue New York-based AIG from collapse in September 2008. Treasury’s portion of the bailout was $47.5 billion. With the latest sale, AIG still owes taxpayers about $24 billion on the original investment, according to Treasury estimates.

 

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