WASHINGTON BUREAU — American International Group Inc. (AIG) says it has used cash it raised recently by selling MetLife Inc. stock to pay the U.S. Treasury Department $6.9 billion.
AIG, New York (NYSE:AIG), ended up with the stock after it sold American Life Insurance Company to MetLife, New York (NYSE:MET), in 2010.
The Treasury Department lent AIG a total of $68 billion through the Troubled Asset Relief Program (TARP). The department still has an $11 billion preferred equity interest in AIG, officials say.
The department has recovered about 70% of the $411 billion lent to AIG, banks, the auto industry and others at the height of the financial crisis, officials say.