American International Group (AIG) paid back $2.15 billion in Troubled Asset Relief Program bailouts, leaving $51 billion still outstanding, the Treasury Department said Thursday. AIG, which sold credit default swaps and other financial instruments to insure mortgage-backed securities during the housing boom, received roughly $180 billion in bailouts from the Treasury when the mortgage market collapsed in 2008. It made this latest repayment by selling off its Nan Shan life insurance subsidiary. In addition to the $51 billion still outstanding to the Treasury, the Federal Reserve Bank of New York still has $18.8 billion in loans out to Maiden Lane II and III, two LLCs created by the NY Fed to alleviate capital and liquidity pressures on AIG. AIG reported a profit in the second quarter after continued quarterly losses in the billions. In the same quarter, AIG issued an $8.7 billion common stock offering of 100 shares and an addition 200 million shares by the Treasury. The Treasury received $313 billion in total TARP repayments so far, roughly 76% of the $412 billion disbursed under the program. “This is another important milestone in AIG’s remarkable turnaround,” said Tim Massad, the Treasury’s assistant secretary for financial stability. “We continue to make progress in recovering the taxpayers’ investments in AIG.” Write to Jon Prior. Follow him on Twitter @JonAPrior