US expects US$750 mil. more from AIG sale


AP

WASHINGTON — The U.S. government says it expects to receive US$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 US$30.50 each. That brings the total from the fourth round of sales in AIG stock to US$5.75 billion. Treasury announced last week that it sold US$5 billion in AIG stock.

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

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