American International Group's outstanding TARP balance will likely be repaid in full and net additional returns to the government, according to the Government Accountability Office.
As of March 22, the remaining outstanding assistance to AIG totaled $46.3 billion, including unpaid dividends and accrued interest. The amount includes Treasury’s $35.9 billion investment in AIG common stock and a balance of $8.3 billion owed by Maiden Lane III to the Federal Reserve Bank of New York.
The balance is down from $92.5 billion in March 2011 and $154.7 billion in December 2010, reduced because of repayments on the New York Fed loan to Maiden Lane II, repayment of AIA Aurora and sales of Treasury’s common stock in AIG.
Treasury’s sales of AIG stock in May 2011 and March 2012 yielded $11.8 billion in proceeds — mostly to institutions — and reduced Treasury’s ownership to 70% of the company.
“When all the assistance is considered, the amount the federal government ultimately takes in could exceed the total support extended to AIG by more the $15.1 billion,” a GAO report states. “This analysis is primarily based on repayments and recoveries and market valuation of AIG’s stock and does not include estimates of subsidy costs associated with the assistance.”