WASHINGTON -- The government's sale of American International Group Inc., stock will generate an additional $2.7 billion to boost the profit to U.S. taxpayers to $15.1 billion on the insurance giant's bailout, the Treasury Department said Tuesday.
Underwriters of the Treasury's AIG stock offering this week exercised their option to buy additional shares, bringing the total amount of sale proceeds to $20.7 billion.
The sale, which will be completed this week, will end the goverment's majority ownership of the company, reducing the government stake to 15.9% from 53.4%, the Treasury Department said.
AIG still owes the Treasury about $2.6 billion from the bailout. But this week's stock sale, combined with a $17.7-billion profit made by the Federal Reserve Bank of New York on its portion of the bailout, means taxpayers have fully recovered the approximately $130 billion used to rescue AIG starting in 2008.