U.S. Treasury Department officials announced that they offering the common stock of American International Group, Inc. (AIG) for sale, four years after AIG received a $90 billion bailout from the Federal Reserve Bank of New York.
Treasury is selling $4.5 billion of AIG stock. “AIG has indicated that it intends to purchase up to $3 billion of the common stock sold by Treasury in this offering at the initial public offering price,” the Treasury Department said in the announcement. “The underwriters in the offering also have a 30-day option to purchase up to an additional $675 million in common stock from Treasury.”
The stock sale comes as AIG is buying $9.9 billion in “distressed mortgage securities” from the Federal Reserve Bank of New York, which acquired those mortgages when it bailed out other banks in the 2008 crisis.
“AIG bought securities with a market value of $7.1 billion in the recent auctions,” according to the Wall Street Journal.