Wednesday, December 19, 2012

U.S. Treasury's sale of AIG turns a profit of nearly $23 billion

(Reuters) - The U.S. Treasury's sale of its remaining stake in American International Group Inc (AIG.N) will leave taxpayers with a profit of nearly $23 billion - more than the next three most successful bailouts combined.
The government's profit on the deal is a turnabout from what was one of the most reviled bailouts of the financial crisis. The Government Accountability Office at one point suggested there was a real chance taxpayers would never be repaid in full.

Yet they were, with $22.7 billion in total returns, including the proceeds of the sale Treasury launched Monday night, AIG said. The government provided AIG with some $182 billion of support.

"Thank You - We Did It," AIG Chief Executive Robert Benmosche wrote in a memo to AIG staff on Tuesday. "Today warrants a celebration like no other in AIG's history and places well in the past a crisis none of us will ever forget.

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