TARP losses revised down, to $117bn
American International Group Inc.'s moves to sell two large life-insurance units will give a boost to the U.S. government's efforts to recoup its taxpayer-funded investments in hundreds of banks, insurers and other companies. But losses on the rescues still are expected to hit about $117 billion. AIG said Monday it expects to raise $35.5bn from the sale of American International Assurance Ltd. to Prudential PLC. AIG is separately expected to reach a deal to sell American Life Insurance Co. to MetLife Inc. for $15bn. Proceeds from the two sales would pay off nearly 40% of the $130bn the US government has doled out in the AIG bailout. The company expects to take a few years to completely repay what it owes. Of the $581bn pumped directly into U.S. companies, a total of about $232bn has been repaid or will be as a result of the AIG sales.