Bailout

WASHINGTON -- American International Group Inc., said Wednesday its board of directors decided not to sue the U.S. government over the bailout that rescued the company. News that the insurance giant was considering joining a shareholder suit led by former Chief Executive Maurice "Hank" Greenberg provoked outrage and undermined AIG's high-profile advertising campaign thanking America for the bailout. The company's board met Wednesday to listen to presentations about the federal suit by Greenberg's Starr International Co., which alleges the U.S. government shortchanged AIG shareholders in a bailout that at one point had taxpayers on the hook for more than $182 billion.

WASHINGTON -- At the same time American International Group Inc. has been running high-profile ads thanking America for the bailout that saved the company, the insurance giant reportedly is considering joining a shareholder suit against the U.S. government for the rescue. The AIG board will meet Wednesday and could decide to join a $25-billion suit led by former chief executive Maurice "Hank" Greenberg, the New York Times reported . The suit by Greenberg's Starr International Co. alleges that the 2008 bailout of AIG by the Treasury Department and Federal Reserve Bank of New York in which the government received an 80% ownership stake in the company violated the rights of shareholders.

WASHINGTON - American International Group Inc. has been trying to put on a new face by thanking America for its bailout. But it may end up with more egg on its face for weighing a lawsuit against the U.S. government over the rescue. Directors of the insurance giant, at their regular meeting Wednesday, are expected to consider joining a suit that argues the bailout - U.S. pledges totaling more than $182 billion - shortchanged the company's shareholders. "It takes a lot of gall to say the government that bailed you out didn't pay you enough," said John C. Coffee, a Columbia Law School professor and expert on corporate governance.

WASHINGTON - More than four years after the U.S. began pouring money into ailing banks and automakers, the Obama administration is moving more quickly to shut down the controversial $700-billion bailout fund and rid Uncle Sam of its holdings in private companies. The latest move came Wednesday when the Treasury Department announced plans to sell its remaining 500 million shares of General Motors Co. over the next 15 months - even if that means taking a loss. The task will begin with the sale of about 40% of the government's holdings to GM at $27.50 a share by the end of the month, reducing the U.S. stake in the company to less than 19%. At its peak, the U.S. owned 60.8% of GM after a government-led restructuring.

The U.S. Treasury on Wednesday announced plans to liquidate its holdings in General Motors Co. over the next 15 months, starting with the sale of about 40% of its shares by the end of this month. GM will purchase 200 million of the 500 million shares held by the government at $27.50 a share, almost 8% above Tuesday's closing price but still barely more than half the price at which the government needs to sell if it is to break even. The Treasury Department said it intends to sell the remaining 300 million shares “through various means in an orderly fashion within the next 12-15 months, subject to market conditions.” Some of the sales could start as early as next month.

WASHINGTON -- The Treasury Department said Tuesday that it planned to sell the government's stake in about two-thirds of the 218 mostly small banks that still have not repaid bailout money received during the financial crisis. The sales, beginning as early as next month, will take place through 2013 as the government tries to finish winding down the $700-billion Troubled Asset Relief Program, also known as TARP. Last week, Treasury sold its remaining shares of insurance giant American International Group, formally ending that controversial bailout.

The U.S. Treasury said it is selling the rest of its stake in American International Group Inc., in effect closing the books on one of the biggest and most reviled bailouts of the financial crisis that engulfed the world four years ago. The sale of the Treasury Department's remaining 234 million shares in an offering announced Monday would wipe out the government's 15.9% stake and pad the $15.1-billion profit it has made already from the giant New...

WASHINGTON - The Treasury Department said it would raise $7.6 billion in the sale of its remaining shares of American International Group Inc., ending the controversial bailout of the insurance giant with a $22.7-billion profit. The department agreed Tuesday to sell its remaining 234 million shares in AIG, which represented 15.9% of the company, for $32.50 each. The offering is expected to be completed Friday. The sale, in effect, closes the books on a bailout that, at its height, left the government pledging more than $182 billion in taxpayer funds to rescue the firm in return for owning 92% of its shares.

WASHINGTON -- The Treasury Department said Tuesday it would raise $7.6 billion in the sale of its final shares of American International Group, ending the controversial bailout of the insurance giant with a $22.7-billion profit. The department agreed to sell its remaining 234 million shares in AIG, which represented 15.9% of the company, for $32.50 each. The sale in effect closes the books on a rescue that at its height had the government on the hook for more than $182 billion and owning 92% of the company.

WASHINGTON -- The Treasury Department said Monday that it would sell its remaining ownership stake in insurance giant American International Group, effectively ending one of the largest bailouts of the financial crisis and turning a profit for taxpayers. The sale of the Treasury's remaining 234 million shares -- 15.9% of the company -- would add to the $15.1 billion in profit the government already has made on the bailout. The Treasury would still hold warrants in AIG after the stock sale.