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Treasury Selling Last of AIG Shares

The ""Treasury"":http://www.treasury.gov/press-center/press-releases/Pages/tg1796.aspx announced Tuesday it will sell the remainder of its shares of ""American International Group, Inc. (AIG)"":http://www.aig.com/home_3171_411330.html common stock. The move brings Treasury's stake in the company to an end.


After the offering, Treasury will still hold warrants to purchase about 2.7 million shares of AIG common stock.

""On behalf of the 62,000 employees of AIG, it is my honor and privilege to thank America for giving us the opportunity to keep our promise to make America whole on its investment in AIG plus a substantial profit,"" ""said"":http://www.aig.com/press-releases_3171_438003.html Robert H. Benmosche, president and CEO of AIG. ""Thank you America. Let's bring on tomorrow.""

Benmosche also pointed out that in addition to repaying its debt, AIG paid $22.7 billion in positive returns to the government.

Together, Treasury and the Federal Reserve invested $182.3 billion to stabilize the failing insurance behemoth in September 2008 at the start of the financial crisis.

Bank of America, Citigroup, Deutsche Bank, Goldman Sachs, and JP Morgan were retained as joint bookrunners for the federal offering.

In addition to recouping the total $182.3 billion, the Treasury incurred a positive return of $5 billion, while the Federal Reserve received a positive return of $17.7 billion.

The Treasury received the bulk of its positive return--$4.1 billion--from common stocks and the remainder from preferred stock holdings.

The greatest portion of the Federal Reserve's positive return--and the combined positive return to both the Fed and Treasury--came from Maiden Lane II and III, which purchased mortgage-related assets. The profit from Maiden Lane II and III was $9.5 billion.

Since the financial crisis, AIG has diminished in size to about half of what it was. The company has rid itself of many of its non-core assets and now centers its business on its insurance operations.

The Treasury plans to sell its remaining shares at $32.50 per share.


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