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March 26, 2012 at 11:54 AM
American International Group Inc.’s (AIG) remaining debt to the U.S. government is about $45 billion after paying an additional $1.5 billion to the U.S. Treasury Department, the company says.
AIG says it used about $161 billion of the $182 billion made available in a government bailout to prevent the company’s collapse in 2008.
After this latest repayment—made one year ahead of schedule, says AIG—the Treasury’s ownership of the insurance conglomerate has been reduced to 70 percent.
The Treasury now owns $36.7 billion in AIG stock. It sold $6 billion in common stock it holds in AIG earlier this month.
The Federal Reserve Bank of New York (FRBNY) is still owed another $9 billion in a loan to Maiden Lane III, which holds collateralized debt obligations purchased by AIG Financial Products.
The $1.5 billion repayment retires the Treasury’s preferred interests in a special purpose vehicle (SPV) called AIA Aurora, created to hold ordinary shares of American International Assurance Co. Collateral against the AIA SPV—including an escrow account holding proceeds from its sale of ALICO to MetLife Inc.—has been released, says AIG.
