In September 2008, AIG experienced serious liquidity issues. In order to ensure AIG could continue to meet its financial obligations, and to avoid the further stress on the troubled global financial markets, the U.S. Government, through the Federal Reserve Bank of New York (FRBNY) and the U.S. Department of the Treasury (the Treasury), stepped in to help AIG.
In total, the maximum support authorized by the U.S. Government to AIG reached $182.3 billion by the end of 2008.
Since then, through asset sales and other actions by AIG, the Federal Reserve, and the Treasury, America recovered its $182.3 billion plus a combined positive return of $22.7 billion. Beginning in May 2011, the Treasury successfully sold approximately 1.7 billion shares of AIG common stock in six public offerings for total proceeds of approximately $51 billion, including approximately $13 billion purchased by AIG.
Here’s a breakdown of how it all happened.