AIG Confirms Proceeds from Maiden Lane III Auctions Fully Repaid $5.0
Billion Loan, with Interest, Made by AIG in 2008
NEW YORK -- July 17, 2012
American International Group, Inc. (NYSE: AIG) confirmed today the company has
been fully repaid for the $5.0 billion loan it extended to Maiden Lane III LLC
(ML III) in 2008. The repayment comes from proceeds from completed auctions by
the Federal Reserve Bank of New York (the FRBNY) of certain ML III assets.
“AIG remains committed to making American taxpayers whole, plus a profit,”
said Robert H. Benmosche, AIG President and Chief Executive Officer. “The
continued successful sale of ML III assets is another sign of the progress we
have made with our partners at the U.S. government to achieve our goal of
profitably reducing the American taxpayer’s investments in AIG.”
When originally set up in 2008, ML III borrowed $24.3 billion from the FRBNY,
which, together with a $5.0 billion loan provided by AIG, was used to purchase
a portfolio of collateralized debt obligations from certain counterparties of
an AIG subsidiary. AIG was repaid a total of $5.6 billion, which includes
interest on the loan owed to AIG from ML III. AIG and the FRBNY had previously
confirmed that the outstanding loan by the FRBNY to ML III had been fully
repaid. AIG will continue to receive one third of residual profits generated
by future sales of ML III assets, and has already received $427 million from
residual profits so far.
The maximum support authorized by the U.S. government to AIG reached $182
billion in 2008, of which $21 billion was unused or expired. Together with
repayments, withdrawals, exchanges, sales, and other actions, total
outstanding government support to AIG has decreased by approximately 83
percent, or $152 billion, with approximately 1.06 billion shares of AIG common
stock owned by the U.S. Department of the Treasury as the remaining
investment. It should be noted that the $152 billion decrease only includes a
reduction of original authorized support and not the FRBNY’s profit on ML II
or the profit to date from ML III.
American International Group, Inc. (AIG) is a leading international insurance
organization serving customers in more than 130 countries. AIG companies serve
commercial, institutional, and individual customers through one of the most
extensive worldwide property-casualty networks of any insurer. In addition,
AIG companies are leading providers of life insurance and retirement services
in the United States. AIG common stock is listed on the New York Stock
Exchange and the Tokyo Stock Exchange.
Jim Ankner, 212-770-3277
Liz Werner, 212-770-7074
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