AIG to get $22B in TARP funds for restructuring

By Reuters
Posted Nov. 1, 2010 at 11:45 a.m.

The U.S. Treasury said on Monday that bailed-out insurer American International Group will draw up to $22 billion in Treasury funds to facilitate its restructuring and prepare for an eventual government exit.

The Treasury also reiterated that it expects to earn an overall profit on its bailout investments in the insurance giant, assuming that the AIG restructuring announced on September 30 is executed.

AIG will draw the $22 billion from funds remaining in the Troubled Asset Relief Program to repurchase Federal Reserve preferred stock interests in the special purpose vehicles holding two key subsidiaries, AIA Group Ltd and American Life Insurance Co (ALICO), the Treasury said in a statement.

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One comment:

  1. hwga Nov. 1, 2010 at 1:11 pm

    Guess they don’t have enough bonus money for their employees this year. What a joke, quit wasting our money.