American International Group: The U.S. lowers its stake
Taxpayers are no longer the majority shareholder in American International Group, the insurer rescued by the government in 2008. The U.S. Department of the Treasury sold $20.7 billion in shares to reduce its AIG holdings from 53 percent to 16 percent. When the government sells off its remaining stake, AIG will have the freedom to issue dividends and increase executive pay, which is capped as a condition of the $182.3 billion bailout. CEO Robert Benmosche has looked to shed non-core businesses, including the airplane-leasing unit. He also may close the company’s bank to limit the effects of the Volcker Rule, which curbs proprietary trading.
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