Treasury Sells $6B in AIG Stock

The U.S. Treasury Department struck a deal on Wednesday with the American International Group, or AIG, to sell off $6 billion worth of stock—the most significant stake yet in the U.S. government’s bid to rid itself of its majority-shareholder position of the insurance company. Under the deal, AIG must pay off more than $8.5 billion in obligations. The government’s share in the company is currently about 77 percent and will be reduced to about 70 percent under the terms of the current deal. After 2008, both the Bush and Obama administrations awarded bailouts to AIG, with one of the pledges totaling $182 billion. The company reported a $20 billion profit for the fourth quarter.