AIG Program Updates
One to provided almost $70 billion one Treasury committed courtesy TARP and you will $112 mil committed from the Federal Reserve Bank of brand new York (FRBNY).
When you look at the , Treasury offered its leftover 234,169,156 shares out-of AIG prominent inventory from inside the an enthusiastic underwritten personal giving to possess aggregate proceeds of about $7.6 billion.
You.S. Company of Treasury
Offering effect to this revenue, the overall positive return towards the Government Set aside and you will Treasury’s mutual $182 mil dedication to stabilize AIG in financial crisis was today $twenty-two.seven billion, that have Treasury recognizing an optimistic go back out of $5.0 mil and also the Federal Set-aside recognizing a confident get back out of $17.eight billion.
As an element of its overall $5.0 mil self-confident come back to date, Treasury realized a great $4.step one million self-confident get back towards the preferred inventory holdings and you will a $0.nine mil positive go back towards the preferred stock holdings. Included in the Federal Reserve’s $17.eight mil self-confident return to go out are a $six.8 million self-confident get back with the Federal Reserve Financial of the latest York’s (FRBNY) fund to help you AIG; an excellent $step 1.cuatro million self-confident go back with the popular passions in the AIA Aurora and you will ALICO special-purpose auto that held AIG’s largest overseas existence insurance coverage subsidiaries; and you may a blended $nine.5 million self-confident come back towards Maiden Way II & III special purpose vehicle.
Brand new combined cash of $9.5 mil regarding the Maiden Lane II and III special purpose vehicle, and therefore purchased mortgage-associated property away from AIG as well as counterparties, depicted the most significant portion of the complete $twenty-two.seven billion confident come back.
Just like the economic crisis, AIG have undertaken a remarkable reorganizing energy, and this place it inside the a more powerful status to settle taxpayers. How big the company has been slashed almost in half whilst offered low-core assets and you can concerned about their core insurance rates operations. AIG’s Borrowing products product (AIGFP) is leftover wound down and contains clipped the legacy types coverage by more than 93 per cent yet.
Over the past 19 weeks, Treasury used half a dozen social choices of AIG popular stock, selling all in all, step 1,655,037,962 shares (in the first place ninety-five percent off AIG’s a fantastic common inventory) at the the common price of $ for every show. Treasury’s $20.7 mil AIG prominent stock offering in the by yourself portrayed the most significant unmarried U.Smon inventory offering how many installment payments create loan CT of all time.
Following are key events as the reorganizing at the beginning of 2011. Look at an ideas artwork detailing the major AIG purchases thanks to .
AIG repaid Treasury $dos.2 billion within the arises from new income of the subsidiaries AIG Celebrity Term life insurance Co., Ltd. and AIG Edison Life insurance Company to help you Prudential Economic, Inc.
AIG reduced Treasury $six.nine million to attenuate an equal share of Treasury’s well-known security demand for AIG. This new proceeds originated from AIG’s deals of the guarantee share in the MetLife and you may out of funds prior to now kept inside expectation of expenditures associated towards deals of its Western Life insurance coverage Co. (ALICO) to help you MetLife.
Treasury marketed two hundred million shares out-of AIG popular inventory getting continues of $5.8 million, and you will cancelled $dos mil away from before the full time — but undrawn money.
AIG paid off Treasury $2.fifteen mil financed from proceeds from brand new profit of AIG’s Nan Shan life insurance coverage subsidiary. Brand new continues were used to pay right back the U.S. taxpayers’ money in the AIG from redemption regarding the same part away from Treasury’s common equity passion within the AIA Aurora LLC, a part out of AIG.
Treasury gotten a fees of AIG off $972 million. The newest payment is financed generally from planned release of escrowed arises from AIG’s income away from ALICO, subsidiary to MetLife, Inc. New proceeds were utilized to pay right back the brand new U.S. taxpayers’ investment for the AIG from redemption of an equal part regarding Treasury’s prominent collateral interests inside AIA Aurora LLC, a subsidiary away from AIG.
