1 minute readThe Treasury Department took in $5.75 billion in proceeds from its sale last week of more than 188 million shares of American International Group (AIG) stock.
The government planned to unload 163.9 million shares of AIG common stock at $30.50 per share. Underwriters in the deal purchased another 24.6 million shares at the same price as part of their over-allotment option, moving another $750 million to the Treasury.
The offering reduced the remaining taxpayer investment in AIG to $24.2 billion, or 871.1 million shares, a roughly 53% stake in the monoline, the Treasury reported Monday.
Regulators, including the Federal Reserve, committed $182 billion to bailout AIG during the financial crisis, in the form of equity and assets, mostly those tied to risky mortgages.
Treasury last sold 188.4 million shares of AIG stock in May for roughly $5.8 billion in proceeds.
Taxpayers realized losses on the AIG bailout, but Treasury restructured investments both under the Troubled Asset Relief Program and through the Federal Reserve Bank of New York in January 2011.
“According to Treasury, the government overall has made a gain thus far on the stock sales,” the Special Inspector General for TARP said in its latest report to Congress.
jprior@housingwire.com
