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| US Treasury agrees to sell $5.8bn worth of AIG shares | US Treasury agrees to sell $5.8bn worth of AIG shares |
| (40 minutes later) | |
| The US Treasury has agreed to sell part of its stake in American International Group (AIG), as it winds down ownership of the global insurer. | The US Treasury has agreed to sell part of its stake in American International Group (AIG), as it winds down ownership of the global insurer. |
| The government plans to sell 200 million AIG shares at $29 (£18) each, a total of $5.8bn. | The government plans to sell 200 million AIG shares at $29 (£18) each, a total of $5.8bn. |
| It stands to make as much as $7.1bn, if banks like those on Wall Street buy more shares from the US Treasury. | It stands to make as much as $7.1bn, if banks like those on Wall Street buy more shares from the US Treasury. |
| After the share sale, the government's ownership stake will fall to 77% from 92%. | |
| "Today's announcement represents an important milestone as we continue to exit our stake in AIG," Treasury Secretary Tim Geithner said in a statement. | |
| "The decision to provide this assistance was exceptionally difficult, but it's clear today that it was essential to stopping a financial panic, preventing a severe economic collapse, and helping save American jobs." | |
| During the financial crisis of 2008, the government's bailout of AIG totalled $180 billion. | |
| It was widely criticised at the time, as taxpayers resented having to foot the bill for what they perceived as Wall Street excess. | |
| US taxpayer profits | |
| The government is estimated to have paid around $28.73 for each share of AIG. | |
| Tuesday's share sale translates into a profit of $0.27 per share for the Treasury and by extension, the taxpayer. | |
| AIG made a profit of $269m in the first three months of 2011, compared to $1.8bn a year earlier. | |
| It was hurt by a $1.7bn payout for disasters including Japan's earthquake and tsunami in March. |