BUSINESS

US Treasury announces plans to sell another $4.5 billion in AIG common stock

08/03/2012 02:54 EDT | Updated 10/03/2012 05:12 EDT
WASHINGTON - The U.S. government says it plans to sell $4.5 billion in American International Group common stock, the latest effort to recoup taxpayer money spent on the largest bailout of the 2008 financial crisis.

The Treasury Department announced the fourth round of AIG stock sales Friday. The insurance company has indicated it intends to purchase up to $3 billion of the stock being offered in this sale.

Treasury and the Federal Reserve stepped in with $182 billion to rescue New York-based AIG from collapse in September 2008. AIG still owes taxpayers $30 billion on the initial investment. Treasury still owns about 61 per cent of AIG's common stock.

Treasury's announcement Friday came a day after AIG announced in an earnings report that its net income rose 27 per cent in the second quarter as its property and casualty and life insurance business brought in more revenue.

During the quarter, AIG repaid all of the loans it owed to the Federal Reserve as part of the financial rescue in 2008 and 2009.