Government Sells AIG Assets for $18B Profit

What's Hot


5 Reasons to Shop for a Home in DecemberFamily

Shoppers Boycott Businesses Selling Trump-Branded ProductsBusiness

15 Things You Should Always Buy at a Dollar StoreMore

Giving Thanks: Why Foreigners Find America AmazingAround The House

New Email Phishing Scam Targets Amazon ShoppersMore

50 Best Gifts Under $25 for Everyone on Your ListFamily

Why Washing Your Turkey Can Make You IllFamily

Pay $2 and Get Unlimited Wendy’s Frosty Treats in 2017Family

The 7 Worst Things to Buy at a Dollar StoreMore

What the Richest 1 Percent Earns in Every StateFamily

10 Ways to Retire Earlier Than Friends on the Same SalaryGrow

The 10 Best Ways to Blow Your MoneyCredit & Debt

The 50 Hottest Toys of the Past 50 YearsFamily

30 Awesome Things to Do in RetirementCollege

The U.S. Federal Reserve is done with AIG, but the U.S. Treasury still holds a majority of its stock for now.

CNN reports “the Federal Reserve finally has wiped its hands clean of AIG and turned a nearly $18 billion profit for taxpayers in the process.”

Insurance giant AIG, or American International Group, “played a major role” in the 2008 financial meltdown we’re still clawing back from. At the time, the government bought up a lot of AIG’s bad debt to keep things from getting worse – something that doesn’t usually happen, and a move that couldn’t quickly be undone.

The good news is that the U.S. Federal Reserve just sold the last of the debt it was holding, for a $6.6 billion profit. Combined with earlier sales and a line of credit, that adds up to the $18 billion figure.

The bad news is that another part of the government still holds a lot of AIG. The Treasury Department owns $29 billion, “roughly 53 percent of AIG’s common stock,” according to CNN.

But as the economy improves and the government continues to sell that stock, it also expects to turn a profit for taxpayers. It’s already been selling back to AIG – earlier this month, the company bought back about eight percent of itself. That’s about $3 billion worth.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!

💰🗣📰

Read Next: Ask Stacy: Why Is My Bond Fund Losing Money?

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,735 more deals!