During the financial crisis, the government's overall support for AIG totaled approximately $182 billion. That included nearly $70 billion that Treasury committed through TARP and $112 billion committed by the Federal Reserve Bank of New York (FRBNY).
Since then, Treasury, FRBNY, and AIG completed a restructuring plan that enabled the company to restore its financial condition and fully repay taxpayers. As of September 14, 2012, Treasury and the Federal Reserve have recovered a combined total of more than $197 billion through repayments of principal and reductions/cancellations in commitments ($178.8 billion), as well as additional income from interest, fees, and other gains ($18.6 billion). This represents a positive return of more than $15 billion compared to the original combined $182 billion commitment. Treasury continues to own approximately 234.2 million shares of AIG common stock, with an approximate market value of $ 7.6 billion (as of the September 10, 2012 price of $32.50). Future sales of Treasury's remaining AIG common stock holdings will provide an additional return to taxpayers.
Following are key events since the restructuring in early 2011. View an info graphic detailing all major AIG transactions on a timeline here.
February 2011
AIG repaid Treasury $2.2 billion in proceeds from the sale of its subsidiaries AIG Star Life Insurance Co., Ltd. and AIG Edison Life Insurance Company to Prudential Financial, Inc.
March 2011
AIG repaid Treasury $6.9 billion to reduce an equal share of Treasury’s preferred equity interest in AIG. The proceeds came from AIG’s sale of its equity stake in MetLife and from funds previously held in anticipation of expenses related to the sale of its American Life Insurance Co. (ALICO) to MetLife.
May 2011
August 2011
AIG repaid Treasury $2.15 billion funded through the proceeds from the sale of AIG’s Nan Shan life insurance subsidiary. The proceeds were used to pay back the U.S. taxpayers’ investment in AIG through the redemption of an equal portion of Treasury’s preferred equity interests in AIA Aurora LLC, a subsidiary of AIG.
November 2011
Treasury received a repayment from AIG of $972 million. The payment was funded primarily through the scheduled release of escrowed proceeds from AIG’s sale of ALICO, subsidiary to MetLife, Inc. The proceeds were used to pay back the U.S. taxpayers’ investment in AIG through the redemption of an equal portion of Treasury’s preferred equity interests in AIA Aurora LLC, a subsidiary of AIG.
February 2012
March 2012
Treasury sold 207 million shares of AIG common stock for proceeds of $6.0 billion. In addition, AIG fully repaid Treasury’s remaining preferred equity investment in the AIG-owned entity AIA Aurora LLC (AIA SPV) – a special purpose vehicle that holds ordinary shares in AIA Group Limited (AIA) – more than a year ahead of schedule.
May 2012
June 2012
August 2012
August 2012
Sale of final remaining securities held in Maiden Lane III. Total gain from Maiden Lane II portfolio for the Fed is $6.6 billion.
September 2012
Treasury sold 636.9 million shares of AIG common stock for aggregate proceeds of approximately $20.7 billion.
Following this sale, Treasury's remaining investment in AIG consists of approximately 234.2 million shares of common stock. Treasury's percentage ownership of AIG’s outstanding shares of common stock has decreased from approximately 92 percent at its peak to 15.9 percent currently. Treasury will continue to wind down its remaining investment related to AIG in a way that balances exiting as soon as practicable and maximizing value for taxpayers.