NEW YORK ( TheStreet) -- The U.S. Treasury Department will soon see bailout funds come pouring back in from other big financial firms once it finishes selling its last common stock holdings of Citigroup (C) this week.
American International Group (AIG) appears to be next on the government's agenda, with a stock offering coming as soon as March. On Sept. 30, the government and AIG announced plans to transfer a $50 billion preferred stock investment into 1.65 billion shares of common stock. The Treasury will recoup its investment by selling that 92% stake in tranches over time, similar to its approach with Citi.
"We hope to be able to go to the market with a public offering of AIG this spring, but we have work to do to make that happen," says spokesman Mark Herr. "We are working as diligently as we can to achieve this as quickly as possible, subject to market conditions. We remain committed to executing the steps and meeting all conditions in the recapitalization agreement as soon as possible."
Additionally, the Treasury has $49.4 billion invested in dozens of small-to-medium sized banks around the country. Some of them, like
(STI), a regional bank that operates largely in the Southeast, are awaiting the outcome of a
Federal Reserve review of their capital plans.
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