AIG Program Position

You to integrated almost $70 million you to definitely Treasury committed as a result of TARP and you may $112 billion the full time of the Government Put aside Lender of the latest York (FRBNY).

In the , Treasury marketed their leftover 234,169,156 shares off AIG preferred inventory inside a keen underwritten social giving having aggregate continues of around $7.six billion.

U.S. Institution of your own Treasury

Offering effect to this income, the entire confident go back towards the Government Set-aside and you may Treasury’s shared $182 billion commitment to balance AIG in overall economy is actually today $twenty-two.seven billion, having Treasury realizing an optimistic go back regarding $5.0 billion while the Federal Put aside realizing an optimistic get back away from $17.seven billion.

As an element of the overall $5.0 million self-confident come back to day, Treasury realized good $cuatro.step one million self-confident get back on the the common inventory holdings and you will a $0.nine mil self-confident go back into their well-known stock holdings. Within the Government Reserve’s $17.eight mil positive return to date are an excellent $6.8 million positive come back with the Federal Put aside Bank of the latest York’s (FRBNY) loans to AIG; a good $step 1.cuatro million self-confident get back into prominent passion about AIA Aurora and you may ALICO special purpose car that held AIG’s prominent international lifestyle insurance rates subsidiaries; and you may a combined $nine.5 billion confident go back toward Maiden Way II & III special purpose vehicles.

The latest joint money of $9.5 billion regarding Maiden Way II and you may III special-purpose vehicle, and this ordered financial-associated property regarding AIG and its counterparties, represented the most significant portion of the total $twenty-two.7 million positive go back.

As overall economy, AIG keeps undertaken a remarkable reorganizing effort, and that place it during the a healthier standing to repay taxpayers. The size of the company has been slash nearly in half since it marketed non-key property and you will worried about their center insurance policies procedures. AIG’s Borrowing products equipment (AIGFP) was continuing to be injury down and also clipped the legacy derivatives visibility by over 93 per cent up to now.

Over the past 19 months, Treasury held half a dozen public offerings out of AIG prominent inventory, offering a total of step 1,655,037,962 offers (to begin with ninety-five percent of AIG’s outstanding preferred inventory) on the common cost of $ for each and every express. Treasury’s $20.eight billion AIG popular stock offering inside by yourself illustrated the greatest single You.Smon stock giving of all time.

Following are key events as the reorganizing during the early 2011. Examine an information graphic detailing most of the big AIG deals because of .

AIG paid off Treasury $2.2 million from inside the proceeds from the income of the subsidiaries AIG Superstar Life insurance Co., Ltd. and you will AIG Edison Term life insurance Business so you can Prudential Economic, Inc.

AIG paid down Treasury $6.9 mil to minimize the same share of Treasury’s common equity demand for AIG. New proceeds originated AIG’s income of their guarantee risk from inside the MetLife and away from funds in past times kept inside the expectation from expenses relevant on sale of their American Insurance Co. (ALICO) to MetLife.

Treasury marketed two hundred million shares away from AIG preferred stock getting continues out-of $5.8 million, and you can cancelled $2 mil regarding in earlier times the amount of time — however, undrawn finance.

AIG repaid Treasury $2.15 billion financed through the arises from Missouri personal loans the fresh new business off AIG’s Nan Shan life insurance policies part. The continues were utilized to invest right back the fresh U.S. taxpayers’ financing within the AIG from redemption of an equal part regarding Treasury’s popular security hobbies in the AIA Aurora LLC, a subsidiary out-of AIG.

Treasury acquired an installment out-of AIG from $972 mil. The latest payment was funded generally through the planned release of escrowed proceeds from AIG’s selling of ALICO, subsidiary to MetLife, Inc. The fresh continues were used to spend back the latest You.S. taxpayers’ financing inside the AIG through the redemption of an equal part away from Treasury’s well-known equity interests inside the AIA Aurora LLC, a part off AIG.