American International Group (AIG) has made a $972 repayment on its bailout loan to the United States Treasury in its latest effort to bring down its total debt to the federal government.
This most recent repayment has brought the owed amount on the taxpayer-funded bailout from 2008 down to approximately $50 billion. At the peak of the financial crisis, AIG was provided with a bailout of $182 billion by way of the Troubled Asset Relief Program. The insurer also borrowed money from the Federal Reserve, but has repaid all but $17.5 billion of that amount.
The United States Federal Government continues to own 77 percent of the common stock for the insurance company, having sold off some of its ownership in May 2011. It isn’t forecasted that the rest of the stock will be sold until AIG shares start to rise.
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This year, the stock dropped by almost half of its previous value, and currently sits lower than the $28.72 for which the Treasury made its purchase in the first place.
Robert H. Benmosche, the president of AIG, released a statement that said that this repayment is only the most recent effort in its overall objective to fully repay the taxpayer funds. He explained that the insurer has been making continued progress toward achieving its finally goal of making sure that the entire investment made by taxpayers into the company will be entirely recouped.
He added that “I am confident that AIG’s employees will continue to work hard so we can achieve this goal”.