AIG makes more progress in paying off taxpayer personal financing

AIG had to borrow money within the bailout, and a lot of it. It was controversial that a $130 billion installment loan from taxpayers was taken out by the insurance coverage business. It appears now that AIG is making progress. The business is meeting the Treasury to work out debt negotiation soon. Also, a number of billion have already been paid back. The business is set to convert the 80 % in preferred shares the government holds to common shares, which would be sold for fast money.

Treasury works to help AIG create a payment plan

There isn’t really a company that got emergency money from the government that does not want those balances reduced to zero. AIG received about $132 billion in loans from the working class individuals, and for that nice offer of help, the government got an 80 % stake in the preferred shares of the company. Since then, AIG has been selling sub-companies and creating capital to pay off the government. USA Today explains the Treasury office and American International Group most recently met to talk about payment plans. The business hopes to finish paying off the loan in two years.

Stock getting sold

The bulk of the fund raising would be done via sale of stock. About 80 % of preferred shares in American International Group are held by the government. There is less security in preferred shares than there is in security bonds although you will find more dividends. About 90 percent of common stock is held by the government right now. The government was hoping investors would pick it up. The stock price going up would mean a profit. The government would love for making a profit.

American International Group keeps fighting for its way

AIG is still in debt to the government. It owes about $100 billion still. That is a lot of cash for any corporation to get together in two years. The business has been doing well in settling accounts, as non-essential divisions are sold off to other businesses.

Additional reading

USA Today

usatoday.com/money/industries/insurance/2010-09-14-wsj-AIG_N.htm