AIG Says Repays Government $1.5B

Features Reuters

American International Group said on Thursday it has repaid the Treasury its remaining $1.5 billion preferred equity investment, but the insurer still owes the government and Federal Reserve $45 billion for the bailout it received during the financial crisis.

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The insurer, which paid down the investment more than one year ahead of schedule, received a total of $182 billion from the government during the crisis.

The U.S. Treasury's current total investment in AIG is now $35.7 billion while the New York Federal Reserve's loan to the company is valued at $9 billion.

The repayment will free up AIG's collateral against AIA Aurora, which was a special purpose vehicle set up in December 2009 in exchange for a reduction in the debt that AIG owed the New York Fed at the time.