Four years ago, the nation’s largest insurance group was on the brink of filing for bankruptcy. However, the largest government bailout of the 2008 financial crisis was able to rescue to company from the edge of financial collapse. Since then, AIG (American Insurance Group) has been working to repay its debt obligations of upwards of $182 billion.
Earlier this week, the U.S. Treasury Department reported that it had sold all of its remaining shares of AIG. This final sale marks the close of AIG’s mission to repay the government for the bailout it received just four years ago, at the height of economic turmoil. The Treasury is reporting that it received $32.50 a share for its 234.3 million shares, bringing their repayment total to $22.7 billion more than expected.
As one of the largest government bailout packages, the $182 billion worth of loans and federal guarantees has challenged AIG in their efforts of repayment. Once held as a dim fate for repayment, AIG has been able to provide the Treasury with a large profit from their mere 16% in ownership stake, as well as raise $5.3 billion from a Chinese in the sale of 90% of their airplane leasing unit. AIG is lucky to have successful in restructuring and returning to viability in order to repay the entire rescue, plus generate a profit for taxpayers.