US Treasury announces final AIG stock sale

The US government is selling its remaining shares of American International Group (AIG), moving to close the books on the government's biggest bailout during the 2008 financial crisis.

AIG, which is based in New York City, nearly collapsed at the height of the financial crisis. The company suffered massive losses from exotic financial instruments whose value was based on mortgage securities.

The Treasury on Monday said it had begun a sale of 234.2 million shares of common stock in a public offering. The government's shares represent a 16 per cent ownership stake in the insurance company.

The Treasury has already recovered more on its AIG investment than the original $182.3 billion bailout. It was the largest government bailout package, including both loans and federal guarantees.

As of September, Treasury and the Federal Reserve had received $197.4 billion.

AIG became a symbol for excessive risk on Wall Street and a touchstone of public anger. It was criticised by some members of Congress for spending $440,000 on spa treatments for executives only days after it was bailed out.

AIG stock closed at $33.36 on Monday, down 77 cents from Friday's close. AIG stock has traded between a low of $22.19 and a high of $37.67 over the past 52 weeks.