UPDATE: Treasury Receives $2B TARP Repayment from American International Group

Today, the U.S. Department of the Treasury announced that it had received an additional repayment from American International Group AIG of $2.15 billion funded through the proceeds from the previously announced sale of AIG's Nan Shan life insurance subsidiary. The proceeds were used to pay back the U.S. taxpayers' investment in AIG through the redemption of an equal portion of Treasury's preferred equity interests in AIA Aurora LLC, a subsidiary of AIG. “This is another important milestone in AIG's remarkable turnaround,” said Assistant Secretary for Financial Stability Tim Massad. “We continue to make progress in recovering the taxpayers' investments in AIG.” During the financial crisis, the U.S. Government's support for AIG totaled approximately $180 billion. After today's repayment, the U.S. Government's remaining outstanding investment in AIG through Treasury is $51 billion. In addition, the Federal Reserve Bank of New York has loans to Maiden Lane II and III ($18.8 billion, including principal and accrued interest outstanding). These Federal Reserve Bank of New York loans are collateralized by assets with value well in excess of the outstanding loan balances ($31.7 billion). Overall, Treasury has received $313 billion in repayments and other income from its TARP investments – more than 76 percent of the $412 billion disbursed under the program to date.