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.
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.