During the overall economy, the fresh new government’s overall assistance for AIG totaled as much as $182 mil
AIG Program Condition
You to integrated nearly $70 billion you to definitely Treasury the time compliment of TARP and you will $112 mil the full time because of the Federal Set-aside Financial of the latest York (FRBNY).
From inside the , Treasury sold their kept 234,169,156 shares out-of AIG preferred inventory in the an underwritten societal giving to possess aggregate continues of around $eight.6 mil.
U.S. Agencies of one’s Treasury
Giving perception to this business, the overall positive come back to your Federal Set aside and Treasury’s shared $182 mil dedication to balance out AIG for the overall economy is now $twenty-two.seven mil, with Treasury realizing a positive go back off $5.0 mil and the Federal Reserve recognizing a positive return of $17.7 billion.
Included in their overall $5.0 million positive come back to time, Treasury realized good $cuatro.1 mil confident return with the the well-known stock holdings and you will a great $0.nine billion self-confident get back toward its common inventory holdings. As part of the Federal Reserve’s $17.eight billion self-confident come back to go out are a good $6.8 mil confident get back with the Federal Set-aside Financial of new York’s (FRBNY) loans so you can AIG; a good $1.cuatro mil confident return on popular welfare regarding AIA Aurora and you will ALICO special purpose vehicle you to definitely kept AIG’s largest international lifetime insurance subsidiaries; and you can a combined $nine.5 mil confident go back to the Maiden Lane II & III special purpose car.
Brand new mutual finances away from $9.5 billion regarding Maiden Lane II and III special purpose automobile, and that purchased mortgage-associated assets off AIG and its own counterparties, represented the largest portion of the total $twenty-two.eight mil positive return.
Just like the economic crisis, AIG have undertaken a remarkable restructuring effort, and therefore place it for the a healthier condition to settle taxpayers. The dimensions of the company might have been cut nearly in half because it ended up selling non-core possessions and you can focused on the key insurance policies operations. AIG’s Borrowing products tool (AIGFP) are leftover injury down possesses clipped the heritage derivatives publicity by more than 93 per cent to date.
During the last 19 days, Treasury conducted six societal choices regarding AIG popular stock, offering a total of step one,655,037,962 shares (to start with ninety-five % out-of AIG’s a good preferred stock) at the typical price of $ for each and every share payday loan for bad credit California. Treasury’s $20.seven billion AIG well-known inventory providing in by yourself depicted the greatest single You.Smon inventory giving in history.
After the are foundational to situations while the reorganizing at the beginning of 2011. Look at a suggestions graphic describing all of the big AIG transactions compliment of .
AIG paid Treasury $2.dos mil in arises from the newest sales of its subsidiaries AIG Star Coverage Co., Ltd. and AIG Edison Term life insurance Organization to Prudential Economic, Inc.
AIG reduced Treasury $6.nine mil to reduce an equal share out of Treasury’s preferred guarantee demand for AIG. The newest proceeds originated AIG’s marketing of its guarantee share during the MetLife and off finance previously stored during the anticipation off expenses associated on the revenue of their American Insurance Co. (ALICO) so you’re able to MetLife.
Treasury sold 200 million shares from AIG preferred stock for proceeds off $5.8 mil, and cancelled $dos mil away from previously the full time — however, undrawn loans.
AIG reduced Treasury $2.15 billion financed from arises from this new revenue out of AIG’s Nan Shan term life insurance part. This new continues were utilized to pay right back this new U.S. taxpayers’ funding inside AIG from redemption from the same bit away from Treasury’s popular equity passion from inside the AIA Aurora LLC, a subsidiary off AIG.
Treasury obtained a fees from AIG away from $972 million. New payment try financed mostly from scheduled release of escrowed proceeds from AIG’s sale off ALICO, part so you can MetLife, Inc. The new continues were utilized to invest right back brand new You.S. taxpayers’ money in the AIG from redemption off the same section off Treasury’s prominent equity welfare in the AIA Aurora LLC, a part from AIG.
