Into the financial crisis, new government’s total help to own AIG totaled just as much as $182 billion

By Last updated Jan 10, 2025

AIG System Updates

You to incorporated almost $70 million one Treasury committed due to TARP and $112 billion the time by the Government Set-aside Bank of brand new York (FRBNY).

Inside the , Treasury sold the kept 234,169,156 offers from AIG well-known stock when you look at the an underwritten societal giving to possess aggregate proceeds of approximately $7.six million.

U.S. Department of the Treasury

Providing perception compared to that revenue, the entire self-confident get back to the Government Set aside and you may Treasury’s combined https://cashadvanceamerica.net/payday-loans-wy/ $182 billion commitment to balance AIG for the financial crisis try today $22.seven mil, which have Treasury realizing an optimistic come back of $5.0 mil therefore the Federal Reserve recognizing an optimistic go back regarding $17.seven million.

Included in their overall $5.0 billion positive return to time, Treasury know a $cuatro.step 1 million self-confident go back towards their prominent stock holdings and you will a $0.nine mil self-confident go back to the their common inventory holdings. As part of the Federal Reserve’s $17.seven million confident return to date is an excellent $6.8 billion self-confident come back to your Federal Reserve Bank of brand new York’s (FRBNY) funds so you can AIG; a good $step 1.4 mil confident get back toward well-known appeal on the AIA Aurora and you may ALICO special purpose car you to held AIG’s biggest overseas life insurance rates subsidiaries; and you may a mixed $9.5 million self-confident get back toward Maiden Way II & III special purpose automobile.

The new joint money off $9.5 billion on the Maiden Lane II and you will III special-purpose vehicle, and this purchased mortgage-associated property of AIG and its counterparties, portrayed the greatest part of the full $twenty two.eight million self-confident come back.

Just like the overall economy, AIG has actually performed a remarkable restructuring efforts, and therefore place it inside a more powerful updates to settle taxpayers. The dimensions of the company has been cut nearly in half because offered low-core property and you can concerned about their key insurance coverage businesses. AIG’s Lending products equipment (AIGFP) is continuing to be wound off and contains reduce their history types publicity from the over 93 % up to now.

During the last 19 days, Treasury presented half dozen social choices from AIG popular stock, selling all in all, step one,655,037,962 shares (in the first place ninety-five per cent away from AIG’s outstanding popular stock) on an average cost of $ for every single show. Treasury’s $20.7 mil AIG popular stock offering inside alone portrayed the largest solitary You.Smon stock providing at this moment.

Pursuing the are key events as reorganizing at the beginning of 2011. Check an information visual discussing all major AIG purchases due to .

AIG paid down Treasury $2.2 billion from inside the arises from the fresh new purchases of its subsidiaries AIG Star Life insurance coverage Co., Ltd. and you may AIG Edison Coverage Business so you’re able to Prudential Financial, Inc.

AIG repaid Treasury $six.nine million to reduce the same express out of Treasury’s common collateral interest in AIG. This new proceeds came from AIG’s income of the equity share during the MetLife and you may out of fund previously kept inside expectation out of costs associated into the sales of their Western Life insurance Co. (ALICO) in order to MetLife.

Treasury ended up selling 200 million offers out-of AIG preferred inventory to have continues out-of $5.8 mil, and you will cancelled $dos billion regarding in earlier times the full time — however, undrawn fund.

AIG paid off Treasury $dos.fifteen mil funded from proceeds from the latest profit out-of AIG’s Nan Shan life insurance part. The fresh proceeds were utilized to pay back the new U.S. taxpayers’ financial support within the AIG from the redemption of an equal bit away from Treasury’s popular security interests in AIA Aurora LLC, a subsidiary off AIG.

Treasury received a fees of AIG regarding $972 mil. The fresh new commission is funded primarily from the arranged launch of escrowed proceeds from AIG’s sales off ALICO, part so you’re able to MetLife, Inc. The new continues were used to invest straight back the new You.S. taxpayers’ investment inside AIG from the redemption out-of the same bit away from Treasury’s preferred security passion in AIA Aurora LLC, a part out-of AIG.