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  • Dec 12th, 2012
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The US Treasury said Tuesday it had sold off all of its remaining shares in insurer AIG, four years after the government laid out $182 billion to rescue the company in the financial crisis. The Treasury said it earned $7.6 billion on the sale of its final 234 million shares, taking the government's net profit on the AIG bailout to $22.7 billion.

Although it exited its equity position with the latest sale, the Treasury continues to hold warrants to purchase 2.7 million shares. The bailout of what was once the world's largest insurer included both equity and loans from the Treasury and Federal Reserve, injected as AIG imploded under the weight of hundreds of billions of dollars of under-collateralized credit default swaps it issued to banks and investment companies.

Copyright Agence France-Presse, 2012


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