The Treasury Department said on Sunday that it plans to sell an additional $18 billion worth of shares in the American International Group, drastically reducing the government's stake in the bailed-out insurer.
The US Treasury is to sell $5 billion worth of shares in American International Group Inc. (AIG) in a stock offering, with the bailed-out insurer buying $2 billion.AIG, seen as a symbol of the excesses that epitomized the global financial meltdown in 2008, was saved from almost certain bankruptcy in September that year by the US government.The Treasury announced in a statement Sunday that it would sell 163,934,426 shares of its AIG common stock at $30.50 per share in an underwritten public offering, its third such sale since the government intervened at the company.
Money Morning submits:
By Jack Barnes
American International Group Inc. (AIG) provides insurance services to an international market place. In 2008, the company was bailed out of its positions by the U.S. government, which owned 92% of AIG at its peak.