Total U.S. Government Authorized Support in AIG Reduced by More Than
$152 Billion to Date
NEW YORK--(BUSINESS WIRE)--Jun. 14, 2012--
American International Group, Inc. (NYSE: AIG) confirmed today that, as
a result of the recently completed auctions by the Federal Reserve Bank
of New York (FRBNY) of certain Maiden Lane III LLC (ML III) assets, the
outstanding loan by the FRBNY to ML III has been fully repaid. The ML
III loan was non-recourse to AIG, and was being repaid with the cash
flows from the interest and principal payments and liquidation of the
assets in the facility.
“The repayment of the Federal Reserve’s Maiden Lane III loan represents
another significant milestone in the transformation of AIG,” said Robert
H. Benmosche, AIG President and Chief Executive Officer. “We are
extremely encouraged by the continued progress our partners at the
Federal Reserve and U.S. Treasury have made to profitably reduce the
U.S. government’s investments in AIG.”
To date, AIG has paid in full the FRBNY Credit Facility, the AIA SPV
preferred interests, and the American Life Insurance Company (ALICO) SPV
preferred interests. In addition, the U.S. Treasury’s stake in AIG
common stock has been reduced by $17.5 billion and the Maiden Lane II
and III loans have been fully repaid. The Federal Reserve has earned
nearly $3 billion from the sale of the Maiden Lane II (ML II) portfolio
and, based on current market values, could earn as much when the ML III
portfolio is fully liquidated.
The maximum support authorized by the U.S. government to AIG reached
$182 billion in 2008, of which $21 billion was unused or expired.
Together with repayments, withdrawals, exchanges, sales, and other
actions, total outstanding government support to AIG has decreased 83
percent, or $152 billion, with approximately $30 billion worth of shares
of AIG common stock owned by the U.S. Treasury as the remaining
investment. It should be noted that the $152 billion decrease only
includes a reduction of original authorized support and not the Federal
Reserve’s profit to date on ML II or the expected profit for ML III.
American International Group, Inc. (AIG) is a leading international
insurance organization serving customers in more than 130 countries. AIG
companies serve commercial, institutional, and individual customers
through one of the most extensive worldwide property-casualty networks
of any insurer. In addition, AIG companies are leading providers of life
insurance and retirement services in the United States. AIG common stock
is listed on the New York Stock Exchange and the Tokyo Stock Exchange.
Source: American International Group, Inc.
American International Group, Inc.