NEW YORK ( TheStreet) -- American International Group (AIG) said Tuesday that it repaid about $6.9 billion to the U.S. Treasury Department as the insurance giant continues to make progress on exiting the large, complex array of bailouts it entered during the financial crisis.
AIG made the payment after closing on an earlier announced sale of MetLife (MET) stock that it received as part of a divestiture last year. AIG received $9.6 billion from the MetLife stock transaction, a portion of which is being held in an escrow account.
With its latest repayment, AIG has returned most of its $180 billion worth of borrowings and credit lines from taxpayers, including $36 billion worth in 2011. The company extinguished its debt to the Federal Reserve, though the Treasury Department still has an $11.3 billion stake in a special vehicle backed by equity in AIA, another business AIG divested last year in a public offering. It will also have a 92% equity stake in AIG to be sold over time.
"We will continue to take all the right steps to ensure that America's taxpayers recoup in full their investment in AIG," AIG CEO Robert Benmosche said in a statement. "Thanks to the hard work of AIG's employees, we have made extraordinary progress, which I am confident we will continue."-- Written by Lauren Tara LaCapra in New York.
>To contact the writer of this article, click here: Lauren Tara LaCapra. >To follow the writer on Twitter, go to http://twitter.com/laurenlacapra. >To submit a news tip, send an email to: firstname.lastname@example.org.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV