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WASHINGTON – Today, the U.S. Department of the Treasury announced that it has agreed to sell all of its remaining 234,169,156 shares of American International Group, Inc. (AIG) common stock at $32.50 per share in an underwritten public offering. The aggregate proceeds to Treasury from the common stock offering are expected to total approximately $7.6 billion.

Giving effect to today's offering, the overall positive return on the Federal Reserve and Treasury's combined $182 billion commitment to stabilize AIG during the financial crisis is now $22.7 billion. To date, giving effect to the offering, Treasury has realized a positive return of $5.0 billion and the Federal Reserve has realized a positive return of $17.7 billion.

Max Combined

Commitment Repayments, Canceled/Reduced Commitments, Interest/Fees/Gains Positive Return Federal Reserve $112.5 billion $130.2 billion +$17.7 billion Fed Loans to AIG¹ $35.0 billion $41.8 billion +$6.8 billion AIA/ALICO SPV,

Preferred Interests $25.0 billion $26.4 billion +$1.4 billion Maiden Lane II & III $52.5 billion $62.0 billion +$9.5 billion Treasury $69.8 billion $74.8 billion +$5.0 billion Common Stock $47.5 billion $51.6 billion +$4.1 billion Preferred Stock $22.3 billion $23.2 billion +$0.9 billion Total $182.3 billion $205.0 billion +$22.7 billion

As part of its overall $5.0 billion positive return to date, Treasury realized a $4.1 billion positive return on its common stock holdings and a $0.9 billion positive return on its preferred stock holdings. Included in the Federal Reserve's $17.7 billion positive return to date is a $6.8 billion positive return on the Federal Reserve Bank of New York's (FRBNY) loans to AIG [1]; a $1.4 billion positive return on preferred interests in the AIA Aurora and ALICO special purpose vehicles that held AIG's largest foreign life insurance subsidiaries; and a combined $9.5 billion positive return on the Maiden Lane II & III special purpose vehicles.

The combined profit of $9.5 billion from the Maiden Lane II and III special purpose vehicles, which purchased mortgage-related assets from AIG and its counterparties, represented the largest portion of the overall $22.7 billion positive return.

Since the financial crisis, AIG has undertaken a dramatic restructuring effort, which put it in a stronger position to repay taxpayers. The size of the company has been cut nearly in half as it sold non-core assets and focused on its core insurance operations. AIG's Financial Products unit (AIGFP) is continuing to be wound down and has cut its legacy derivatives exposure by more than 93 percent to date.

Over the last 19 months, Treasury has conducted six public offerings of AIG common stock, selling a total of 1,655,037,962 shares (originally 92 percent of AIG’s outstanding common stock) at an average price of $31.18 per share. Treasury's $20.7 billion AIG common stock offering in September 2012 alone represented the largest single U.S. common stock offering in history [2].

After the closing of today's offering, Treasury will continue to hold warrants to purchase approximately 2.7 million shares of AIG common stock – the sale of which will provide an additional positive return to taxpayers.

Today’s announcement is part of Treasury’s ongoing efforts to wind down the Troubled Asset Relief Program (TARP). Giving effect to today’s offering, more than 90 percent ($380 billion) of the $418 billion funds disbursed for TARP have already been recovered to date through repayments and other income. For more details on Treasury’s lifetime cost estimates for TARP programs, please visit Treasury’s Monthly 105(a) Report to Congress on TARP at this link.