Late Monday, the U.S. Treasury said it was selling the last of its stake in American International Group Inc. ai
/quotes/zigman/557836 /quotes/nls/aig AIG +5.50%, the giant insurer that the U.S. taxpayer bailed out as it neared collapse during the financial crisis. Here is a history of important events in the company’s trials and tribulations over the last several years, derived in part from a timeline of the financial crisis assembled by the Federal Reserve Bank of St. Louis.
Sept. 16, 2008 | Federal Reserve Press Release
The Federal Reserve Board authorizes the Federal Reserve Bank of New York to lend up to $85 billion to the American International Group under Section 13(3) of the Federal Reserve Act.
Oct. 8, 2008 | Federal Reserve Press Release
The Federal Reserve Board authorizes the Federal Reserve Bank of New York to borrow up to $37.8 billion in investment-grade, fixed-income securities from AIG in return for cash collateral.
Nov. 10, 2008 | Federal Reserve Press Release | Treasury Department Press Release
The Federal Reserve Board and the U.S. Treasury Department announce a restructuring of the government’s financial support of AIG. The Treasury will purchase $40 billion of AIG preferred shares under the Troubled Asset Relief Program, or TARP, a portion of which will be used to reduce the Federal Reserve’s loan to AIG from $85 billion to $60 billion. The terms of the loan are modified to reduce the interest rate. Market Pulse: TARP program now more than 90% repaid: U.S.
March 2, 2009 | AIG Press Release | Federal Reserve Press Release | Treasury Press Release
The U.S. Treasury Department and Federal Reserve Board announce a restructuring of the government’s assistance to AIG. Under the restructuring, AIG will receive as much as $30 billion of additional capital from TARP. In addition, the U.S. Treasury Department will exchange its existing $40 billion cumulative preferred shares in AIG for new preferred shares with revised terms that more closely resemble common equity.
June 25, 2009 | AIG Press Release
AIG announces that it has entered into an agreement with the Federal Reserve Bank of New York to reduce the debt AIG owes the Federal Reserve Bank of New York by $25 billion. The Federal Reserve Bank of New York will receive preferred interests of $16 billion and $9 billion, respectively, in two new special-purpose vehicles holding the equity of AIG subsidiaries American International Assurance Co. and American Life Insurance Co.
Jan. 19, 2010 | Federal Reserve Bank of New York Press Release
In response to a request from the House Committee on Oversight and Government Reform, the Federal Reserve Bank of New York provides documents that relate to Maiden Lane III LLC and the public disclosures made by AIG in December 2008.
Jan. 14, 2011 | Federal Reserve Bank of New York Press Release
The Federal Reserve Bank of New York announces the termination of its assistance to AIG and the full repayment of its loans to AIG as a result of the closing of the recapitalization that was announced on Sept. 30, 2010. AIG will no longer have any outstanding obligations to the New York Fed.
Dec. 10, 2012 | Treasury plans to sell remaining shares of AIG
The Treasury Department announced Monday that it plans to sell its remaining 16% stake in AIG. In a statement, Treasury said it would sell the 234.1 million AIG shares in a public offering. Bank of America Merrill Lynch, Deutsche Bank Securities, Goldman Sachs and J.P. Morgan Securities have been retained as joint book-runners for the offering. AIG received a $182 billion U.S. government bailout at the peak of the global financial crisis.
With AIG shares’ rise, the U.S.’s $182 billion investment in the insurer has turned a $22 billion profit, according to reports by Marketplace.org and others.
And here’s a bonus link to a Barron’s profile of Robert Benmosche, whom that MarketWatch sister publication characterizes as the man who saved AIG.
– Greg Morcroft