WASHINGTON, (UPI) — The U.S. Treasury said it would put shares of American International Group on the market for $30.50 per share — a $5 billion sale.
On Monday morning AIG shares were listed at $31.42 per share. Treasury officials said 63,934,426 common shares would be sold.
The treasury, which invested $182 billion in bailout assistance for AIG, said the sale would pare its holdings of the insurance giant down to $39 billion, a 79 percent reduction from the total.
“We remain hopeful that taxpayers will ultimately recover every single dollar invested in the company, which is something few would have expected during the depth of the financial crisis,” said Tim Massad, assistant secretary for financial stability.
AIG was one of many firms that became symbolic of the phrase “too big to fail.” The government considered rescuing AIG necessary because a failure of the company would have caused a wave of failings throughout the financial system.
As such, AIG is one of the companies that triggered inclusion of a multi-agency Washington committee charged monitoring firms so big they are considered systemic.
Officials said more than 81 percent of the bailout funds provided through the Troubled Asset Relief Program had been returned — $338 billion of the dispersed $415 billion.