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US earns $18.7b on AIG bailout: Treasury

Published on Sep 12, 2012 7:07 AM
 
The United States (US) government has raked in US$15.1 billion (S$18.7 billion) in profits on its massive rescue of insurer AIG, the Treasury said on Tuesday in a rebuff to critics of the 2008 to 2009 bailout of the finance industry. -- PHOTO: REUTERS

WASHINGTON (AFP) - The United States (US) government has raked in US$15.1 billion (S$18.7 billion) in profits on its massive rescue of insurer AIG, the Treasury said on Tuesday in a rebuff to critics of the 2008 to 2009 bailout of the finance industry.

The massive American International Group (AIG) rescue deal, using US$182 billion of taxpayer funds to save the foundering insurer, finally turned a profit after the Treasury sold off 636.9 million shares on Monday to private investors and the company itself, raising US$20.7 billion.

The share sale cut the Treasury's majority shareholding in the company to 15.9 per cent.

"Future sales of Treasury's remaining AIG common stock holdings will provide an additional return to taxpayers," the department said.

 
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