AIG pays more funds back, TARP recovery at 70%

American International Group repaid another USD 6.9 billion of its bailout on Tuesday, the US Treasury said.

With that payment, the Treasury said it has now recovered 70% of the USD 411 billion distributed under the crisis-era Troubled Asset Relief Program, or TARP.

AIG paid the Treasury USD 6.6 billion from the proceeds of its sale of shares in insurer MetLife, shares it acquired when it sold its international unit Alico to MetLife last year. AIG paid Treasury another USD 300 million in funds it had retained for expenses related to the Alico deal.

After those payments, the Treasury still holds about USD 11.3 billion in preferred interests in AIG. It also owns about 92% of AIG's common stock.

At Tuesday's closing share price, the sale of that stock would generate a profit for the taxpayer of about USD 14.22 billion. The Treasury said it expects taxpayers to recover "every dollar" of AIG's bailout, which at one point swelled to USD 182 billion.

Of the TARP funds still outstanding, about 70% are concentrated in AIG, finance company Ally Financial and automaker General Motors.

Any ultimate profit on the AIG shares would help offset any possible loss from the sale of the auto businesses.