AIG Repays $6.9 Billion to Treasury
TARP repayments pass 70 percent of disbursements, Treasury says
By Clifford Marks
March 09, 2011
The American Insurance Group repaid $6.9 billion of its federal bailout on Tuesday, according to the Treasury Department, which said that the repayment means the Troubled Asset Relief Program has now recovered 70 percent of its disbursements.
Most of the repayment from AIG, a massive insurance company that nearly collapsed during the financial crisis, came from the recent sale of its holdings in Metlife. So dramatic was the company's near collapse in the fall of 2008 that the federal government eventually took a 92 percent in the company and infused tens of billions in capital to prevent its unraveling.
On Monday, Treasury received a separate TARP repayment of $2.7 billion
resulting from its sale of securities in Ally Financial, formerly known as GMAC,
the financing arm of General Motors.
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