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A Light At The End Of The Tunnel For Aig

That’s right, the big New York insurance holding company has had some good news lately. In December, the Treasury sold its remaining 234.2 million shares of AIG common stock, raising about $7.6 billion. This marks full resolution of America’s financial support of AIG, says AIG in a statement, referring to the federal government’s $182 billion bailout of AIG during the 2008 financial crisis. The Treasury continues to hold warrants to purchase approximately 2.7 million shares of AIG common stock, AIG says, noting that this should provide an additional positive return to taxpayers when sold. The total combined profit to taxpayers is $22.7 billion, said AIG President and CEO Robert H. Benmosche in a statement.

The previous month brought some relief, too. That’s when a federal judge dismissed a $25 billion lawsuit that Starr International had filed against AIG. Starr is headed by none other than Maurice “Hank” Greenberg, the former CEO of AIG. According to an Associated Press report, the suit had accused the Federal Reserve Bank of New York of taking valuable assets from AIG shareholders without their consent or fair compensation.


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