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Treasury Department announces price for AIG stock

The U.S. Treasury Department announced today that it will sell off 163 million shares of stock in American International Group Inc. (AIG), hoping to make a profit for taxpayers.

The U.S. government purchased AIG shares in 2008 in what became the biggest bailout of a private company in U.S. history, costing taxpayers $182 billion. The government currently holds $44 billion worth of AIG stock and wants to bring that number down to $39 billion, which would mean that 79 percent of the investment in AIG has been paid back to the U.S. government.  

The AIG stock will be available at $30.50 per share, a price estimated to generate $5 billion. AIG intends to purchase about 65 million shares, valued at about $2 billion. In March, AIG bought back $3 billion worth of stock from the Treasury Department.

“We’re continuing to make significant progress exiting our investment in AIG,” said Tim Massad,  assistant secretary for financial stability, in a release from the Treasury Department. “We remain hopeful that taxpayers will ultimately recover every single dollar invested in the company, which is something few would have expected during the depths of the financial crisis.”

In total, the U.S. government invested $415 billion through the Troubled Asset Relief Program. At this point, 81 percent of that amount – about $338 billion – has been paid back according to the Treasury Department

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