Treasury Earns $7.6 Billion From Sale of Last Shares in A.I.G.

The Treasury Department said on Tuesday that it had sold its remaining stake in the American International Group, earning about $7.6 billion from the sale.

The government sold the 234.2 million shares at $32.50 each, a small discount from the closing price of $33.36 on Monday. The block of shares represented a 15.9 percent stake in the insurer.
With the latest sale, taxpayers have gained about $22.7 billion from a bailout that many predicted would prompt a staggering loss. In an effort to stabilize the global banking system, the government rescued A.I.G. just days after the failure of Lehman Brothers.

“On behalf of the 62,000 employees of A.I.G., it is my honor and privilege to thank America for giving us the opportunity to keep our promise to make America whole on its investment in A.I.G. plus a substantial profit,” Robert H. Benmosche, the insurer’s chief executive, said in a statement. “Thank you America. Let’s bring on tomorrow."

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Obama administration begins major overhaul of food safety rules

The Food and Drug Administration (FDA) released two major regulations aimed at preventing contamination of the food supply. The long-delayed rules implement the Food Safety Modernization Act, a 2010 law that “[shifts] the focus from responding to contamination to preventing it.”

The two rules proposed by the FDA would require food producers to develop and enact comprehensive plans to prevent contamination of their products. Those plans would be submitted to the FDA for approval and enforcement.

“These proposed regulations are a sign of progress that should be welcomed by consumers and the food industry alike,” said Caroline Smith DeWaal, food safety director at the Center for Science in the Public Interest, in a statement.

“The new law should transform the FDA from an agency that tracks down outbreaks after the fact, to an agency focused on preventing food contamination in the first place.” 

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