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US Treasury sells remaining AIG shares
Source: Agencies |
December 12, 2012, Wednesday
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Print Edition
Print Edition
THE US Treasury Department said yesterday that it had sold all of its remaining shares of American International Group Inc, moving to wrap up the government's biggest bailout of the 2008 financial crisis.
The Treasury said it had received US$32.50 per share for its 234.2 million remaining shares, which represented a 16 percent ownership stake in the giant insurance company.
With this sale, Treasury said the government had received US$22.7 billion more than the US$182 billion bailout it provided to support AIG. It was the largest government bailout package, including both loans and federal guarantees.
AIG, which is based in New York City, nearly collapsed at the height of the financial crisis. The company suffered massive losses from financial instruments whose value was based on mortgage securities.
AIG became a symbol for excessive risk on Wall Street. It was criticized by some members of Congress for spending US$440,000 on spa treatments for executives only days after it was bailed out and for millions of dollars in bonuses it gave to executives.
AIG stock traded between a low of US$22.19 and a high of US$37.67 over the past year.
The proceeds from the final stock sale are expected to total about US$7.6 billion.
Treasury said with the stock sale it had realized a positive return of US$5 billion, while the Federal Reserve had got a positive return of US$17.7 billion.
Treasury conducted six public offerings of AIG stock over the last 19 months, selling a total of 1.66 billion shares of the company.
The Treasury said it had received US$32.50 per share for its 234.2 million remaining shares, which represented a 16 percent ownership stake in the giant insurance company.
With this sale, Treasury said the government had received US$22.7 billion more than the US$182 billion bailout it provided to support AIG. It was the largest government bailout package, including both loans and federal guarantees.
AIG, which is based in New York City, nearly collapsed at the height of the financial crisis. The company suffered massive losses from financial instruments whose value was based on mortgage securities.
AIG became a symbol for excessive risk on Wall Street. It was criticized by some members of Congress for spending US$440,000 on spa treatments for executives only days after it was bailed out and for millions of dollars in bonuses it gave to executives.
AIG stock traded between a low of US$22.19 and a high of US$37.67 over the past year.
The proceeds from the final stock sale are expected to total about US$7.6 billion.
Treasury said with the stock sale it had realized a positive return of US$5 billion, while the Federal Reserve had got a positive return of US$17.7 billion.
Treasury conducted six public offerings of AIG stock over the last 19 months, selling a total of 1.66 billion shares of the company.
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