During the overall economy, the government’s total help for AIG totaled as much as $182 million
AIG Program Reputation
One incorporated nearly $70 mil you to definitely Treasury committed because of TARP and you will $112 mil the time because of the Federal Reserve Bank of the latest York (FRBNY).
During the , Treasury sold its kept 234,169,156 offers out of AIG well-known stock inside the an enthusiastic underwritten personal offering to possess aggregate continues of about $eight.six mil.
U.S. Company of your own Treasury
Offering perception compared to that product sales, the overall positive go back towards Government Set-aside and you can Treasury’s combined $182 billion dedication to balance out AIG when you look at the economic crisis try now $twenty two.7 mil, which have Treasury realizing a confident get back off $5.0 billion as well as the Government Reserve recognizing a positive get back off $17.seven billion.
Within their full $5.0 million positive go back to go out, Treasury know an excellent $4.1 mil self-confident go back towards their prominent stock holdings and good $0.9 billion confident get back into its prominent stock holdings. Included in the Government Reserve’s $17.eight million confident go back to time is an effective $6.8 mil confident come back into the Federal Set-aside Financial of brand new York’s (FRBNY) fund to help you AIG; a good $step 1.cuatro billion self-confident go back for the prominent interests on AIA Aurora and you will ALICO special purpose automobile you to kept AIG’s premier foreign existence insurance rates subsidiaries; and you may a blended $9.5 mil self-confident go back into Maiden Way II & III special-purpose auto.
The fresh joint earnings out of $9.5 billion regarding the Maiden Lane II and you will III special-purpose automobile, which bought financial-related possessions off AIG and its counterparties, represented the biggest part of the complete $twenty two.eight mil self-confident come back.
Since the financial crisis, AIG has undertaken a dramatic reorganizing energy, and therefore place it inside a stronger condition to settle taxpayers. How big is the business has been cut nearly in half whilst marketed low-key possessions and you can concerned about the key insurance policies businesses. AIG’s Lending products equipment (AIGFP) is actually continuing to be wound off and it has reduce its legacy derivatives exposure by more than 93 percent so far.
During the last 19 months, Treasury held half dozen social products of AIG popular inventory, offering a maximum of step one,655,037,962 offers (to start with 92 per cent from AIG’s the common inventory) at the an average price of $ for every display. Treasury’s $20.7 mil AIG common inventory providing from inside the alone portrayed the biggest solitary U.Smon inventory providing in history.
Following the are foundational to occurrences once the reorganizing during the early 2011. Check a facts visual outlining the biggest AIG transactions due to .
AIG paid back Treasury $2.2 mil when you look at the proceeds from the latest selling of its subsidiaries AIG Superstar Insurance Co., Ltd. and AIG Edison Life insurance Company so you’re able to Prudential Financial, Inc.
AIG repaid Treasury $6.nine mil to minimize an equal express out-of Treasury’s popular guarantee need for AIG. The brand new proceeds originated AIG’s selling of their equity stake from inside the MetLife and you can out-of money in past times stored within the expectation of costs associated into business of the American Life insurance coverage Co. (ALICO) to MetLife.
Treasury sold two hundred million offers away from AIG popular inventory to own proceeds from $5.8 billion, and cancelled $dos mil out-of in earlier times enough time — but undrawn fund.
AIG paid Treasury $2.15 mil financed through the arises from the latest revenue from AIG’s Nan Shan life insurance coverage part. The brand new proceeds were used to invest back the fresh new You.S. taxpayers’ funding within the AIG from the redemption from an equal portion out-of Treasury’s popular guarantee passions into the AIA Aurora LLC, a part of AIG.
Treasury received a repayment regarding AIG away from $972 mil. The newest fee are financed primarily from scheduled release of escrowed arises from AIG’s marketing out-of ALICO, subsidiary to help you MetLife, Inc. The brand new proceeds were utilized to expend straight back the fresh U.S. taxpayers’ financing in the AIG through the redemption of an equal piece regarding Treasury’s preferred equity passion inside the AIA Aurora LLC, a part regarding AIG.