AIG repays another $6.9-bn TARP loan
09 March 2011
Insurance giant American International Group (AIG) yesterday repaid $6.9 billion of the US government bailout money it received from the Troubled Asset Relief Program (TARP).
AIG said in a statement that with this it has paid approximately $36 billion of the tax payers' money in 2011. This has reduced the balance to about $11.3 billion.
AIG's payments to the US Department of Treasury came after AIG closed on Tuesday the previously announced sale of all MetLife Inc equity securities that AIG received when it sold American Life Insurance Company (ALICO) to MetLife last year. AIG has received approximately $16.8 billion from the sale of ALICO to MetLife.
The aggregate proceeds of the sale, before expenses, were approximately $9.6 billion.
Existing agreements with MetLife relating to the ALICO sale require that $3 billion of that amount to be placed into escrow as substitute collateral for the MetLife common equity units sold.
''We will continue to take all the right steps to ensure that America's taxpayers recoup in full their investment in AIG,'' said AIG president and CEO Robert H Benmosche.