AIG Repays $1.5 Billion, a Year Ahead of Schedule
The U.S. Treasury Department said Thursday that American International Group has repaid taxpayers $1.5 billion, more than a year ahead of schedule.
Treasury said its preferred equity investment in AIG has been repaid in full.
The government invested in AIG as part of its Troubled Asset Relief Program at the beginning of the financial crisis and has been its majority shareholder, investing as much as $182 billion in taxpayer money into the insurance giant.
With the repayment, only $45 billion is owed by AIG to various government entities.
According to Treasury, this month it has recovered more than $14.6 billion on its investment in AIG including $6 billion in proceeds from the sale of common stock and $8.6 billion in repayments of the preferred equity interests.
More than 80 percent, or $333 billion, of the $414 billion funds disbursed for TARP have already been recovered to date through repayments and other income, according to Treasury.
Earlier this month the federal agency said it was selling $6 billion in AIG common stock and said it expected the company to purchase up to $3 billion of the offering.