Factbox: The changing shape of AIG’s bailout

(BestGrowthStock) – The government bailout of insurer American International Group Inc ultimately totaled just more than $182 billion, but the size and form of the rescue changed a number of times over the years.

Following are the highlights of the various key stages of the program:

* SEPT. 2008

The Federal Reserve Bank of New York agrees to lend AIG $85 billion to prevent a “disorderly failure” of the company. The U.S. government gets a 79.9 percent stake in AIG, which plans to use the money to finance the sell-off of assets.

* NOV. 2008

As the company reports a quarterly loss of nearly $25 billion, the government announces a restructured plan of nearly $150 billion that eases terms on AIG but leaves the taxpayer exposed to potentially billions of dollars in losses.

* MARCH 2009

AIG and the government announce the third revision to the plan after AIG posts a quarterly loss of nearly $62 billion. The new aid plan puts another $30 billion at AIG’s disposal, eases terms to save AIG $1 billion a year in payments and preserves more capital to help AIG stay in business.

* SEPT. 2010

AIG, the New York Fed and the Treasury agree on a complex recapitalization plan. The deal, in essence, pays off the New York Fed entirely and leaves the company obligated only to the Treasury. The government’s stake in the company will rise to 92.1 percent under the deal, expected to close no later than March 15, 2011. After it is completed, the Treasury can begin selling shares in the market. People familiar with the situation say Treasury is planning a massive stock offering of as much as a 20 percent stake in the first half of 2011.

Source: Reuters stories

(Reporting by Ben Berkowitz)

Factbox: The changing shape of AIG’s bailout