US government no longer has majority stake in AIG

[September 15, 2012]  NEW YORK (AP) -- The U.S. government is no longer the majority owner of American International Group Inc.

The bailed-out insurance company said Friday that the Treasury Department had wrapped up a planned sale of AIG stock, which netted the government roughly $20.7 billion.

The government's sale of 636.9 million shares means it has less than a majority stake in AIG for the first time since the 2008 financial crisis, when the Treasury lined up a $182 billion bailout.

New York-based AIG said the Treasury now owns about 16 percent of its stock, down from 53 percent.

AIG nearly collapsed in 2008 after suffering massive losses from derivative trades. AIG's bailout was part of the Troubled Asset Relief Program enacted under President George W. Bush. The Federal Reserve Bank of New York also stepped in to help rescue the insurance giant.

The government has recouped a total of $197.4 billion from the company. That's all of the $182.3 billion initially invested, as well as a profit of $15.1 billion.

Shares of AIG rose 65 cents, to $35.09 in midday trading, down slightly from $35.42 reached earlier in the session. That was the highest point the stock has changed hands since November 2010.

[Associated Press]

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