Investment in American International Group (AIG)

Key Facts

• The U.S. government acted to prevent the disorderly failure of AIG, after concluding that such a failure would have caused catastrophic damage to the financial system and the economy.
• Treasury, the FRBNY, and AIG completed a restructuring plan for AIG 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 (as of September 10, 2012) of $7.6 billion. Future sales of Treasury's remaining AIG common stock holdings will provide an additional return to taxpayers.