The Banking and Strategy Initiative

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AIG Sale begins: Treasury sells $6 bln of AIG holdings | Crisis Insight

English: United States Department of the Treas...

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AIG will be buying back $3 bln of it with cash it garnered from other sales and the AIG profit of Maidenlane Securities sales also likely to be added back to the AIG balance sheet.. The US Treasury breaks even on its remaining $42 bln AIG investment ( before this sale) at $28.93 per share and the sale of 2.1 mln shares by the Treasury would bring its holdings down from 77%

Citigroup, Credit Suisse and Ms will be leading the sale of shares by the US Treasury. There is still one tranche of MaidenLane III securities on sale. AIG will also repay government’s $8.5 bln in preferred equity that is directed into a SPV that owns the AIG’s Asia operations AIA equity.  That repayment will enable AIG to further consider the sale of AIA shares in an IPO

The remaining total is just 23% of the original $182 bln on loan to AIG and funnily counts to the same $42 bln we started with to compute the $29 break even for the sale 😀

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