The U.S. Treasury has received another payment from the American International Group (AIG), one of the nation’s largest insurance organizations. The payment is the latest in a series coming from AIG as part of its massive debt owed to the federal government. To date, the company has repaid $18 billion of the $182 billion provided during 2008’s financial crisis. The company still owes the federal government approximately $50 billion it received from the government’s Troubled Asset Relief Program. This week’s payment totaled $972 million.
The insurer has been treading troubled financial waters since 2008, when the government had to provide the company with huge sums of money to keep it from bankruptcy. If AIG had failed completely at the height of the financial crisis, it would have further destabilized the nation’s economy, making far more difficult to recover from the recession. AIG has made progress on repaying its debt thanks to some ambitious insurance products, but the company may be running out of momentum.
AIG fared poorly in the markets Tuesday, closing at $23.42. This is lower than the U.S. Treasury’s expectations, which will likely prolong AIG’s debt. The company’s stocks have been volatile in recent months, which have cast doubt on the insurer’s ability to stay solvent. The company, however, insists that progress is being made in several new insurance sectors outside of the U.S., where new products are being met with consumer favor.