While driving into work today and listening to the radio I heard that the insurance company AIG (parent company of American General) had paid back all of its Government bail-out. I was very happy to hear this as American General has great term and return of premium life insurance plans.
Here’s an article from “ProActiveInvestors.com”: The Federal Reserve Bank of New York said that loans it set up to help the bailouts of American International Group (NYSE:AIG) and now defunct investment bank Bear Stearns during the financial crisis, have been fully repaid.
In total, $53.12 billion in loans were repaid with interest.
The original amount of the loan to a portfolio called Maiden Lane III LLC, created to buy the securities, repay debt and provide capital for some of AIG’s operations, was $24.3 billion.
Another $28.82 billion in loans, set up through a portfolio named Maiden Lane LLC, which helped facilitate Bear Stearns’ takeover by JPMorgan Chase & Co. (NYSE:JPM) were also repaid. The loans were repaid through asset sales.
The government stepped in with a $182.5 billion package to rescue New York-based AIG from collapse in the depths of the financial crisis in 2008 – the largest bailout in history.
The Treasury Department provided $68 billion under its financial bailout program. The government helped broker a rescue sale of Bear Stearns to JPMorgan, as it veered toward ruin.
“This is a major milestone for the Bank and for the public,” New York Fed president William Dudley said.
“I am pleased we were able to accomplish that policy objective and be fully repaid.”
The Treasury Department, meanwhile, still owns about 60 percent of AIG’s common stock and has been selling its shares in chunks. Treasury has recovered $38 billion of the $68 billion it gave to AIG.
The Fed also still owns some investments it acquired from AIG, which it plans to sell over time.
Here’s the link: http://www.proactiveinvestors.com/companies/news/30575/us-government-loans-to-aig-paid-back-30575.html