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Member, Beacon International Group, Ltd.
NEW YORK (Reuters)—American International Group Inc. has repaid another $6.9 billion of its bailout, the U.S. Treasury said Tuesday.
With that payment, Treasury said it has now recovered 70% of the $411 billion distributed under the crisis-era Troubled Asset Relief Program, or TARP.
AIG paid the Treasury $6.6 billion from the proceeds of its sale of shares in insurer MetLife Inc., shares it acquired when it sold its international unit Alico to MetLife last year. AIG paid Treasury another $300 million in funds it had retained for expenses related to the Alico deal.
After those payments, the Treasury still holds about $11.3 billion in preferred interests in AIG. It also owns about 92% of AIG’s common stock.
At Tuesday's closing share price, the sale of that stock would generate a profit for the taxpayer of about $14.22 billion. The Treasury said it expects taxpayers to recover “every dollar” of AIG's bailout, which at one point swelled to $182 billion.
Of the TARP funds still outstanding, about 70% are concentrated in AIG, finance company Ally Financial and automaker General Motors.
Any ultimate profit on the AIG shares would help offset any possible loss from the sale of the auto businesses.
NEW YORKStandard & Poor’s Corp. on Monday downgraded American International Group Inc.’s property/casualty subsidiary Chartis Inc.’s financial-strength rating to A from A+ and revised its outlook on AIG and its operating companies to stable from negative.