AIG pays back $4 billion
Bailed-out insurer American International Group Inc said on Monday it paid back nearly $4 billion in U.S. loans in its single largest cash payment so far to reduce its debt to taxpayers.
The payment reduces the size of the Federal Reserve Bank of New York’s credit facility by that amount to about $30 billion. The outstanding principal balance, excluding fees and interest, is now at just over $15 billion.
At $15 billion, the balance is at its lowest level since the March 2009 restructuring of government aid, a source told Reuters previously. A previous low of $17 billion was reached in December after AIG gave the Fed preferred interest in two special purpose vehicles created to hold its foreign life insurance business.
AIG, which is nearly 80 percent owned by the U.S. government, was rescued in September 2008. Besides the Fed credit facility, the U.S. Treasury Department holds about $49 billion in preferred shares that AIG must repay.
Posted on August 23, 2010, in Newspaper & Journal Articles, Politics & The Economy and tagged AIG, AIG bailout, AIG loan, American International Group, bailout, fed, federal reserve, Federal Reserve Bank of New York, government bailout, payback. Bookmark the permalink. Leave a comment.