WASHINGTON (AP) — The Treasury Department says it will sell more of its shares of common stock in insurance giant American International Group to recoup more of the support the government provided AIG in what was the biggest bailout of the 2008 financial crisis.
It will be Treasury's third sale of AIG stock. The sale is expected to raise around $6 billion. AIG said it planned to purchase $2 billion of the amount put up for sale. The new offering follows Treasury sales of $5.8 billion in AIG common stock in May 2011 and $6 billion in March of this year.
Treasury and the Federal Reserve stepped in with $182 billion to rescue New York-based AIG from collapse. Treasury still owns about 70 percent of AIG's common stock.
