Summary Box: AIG to sell AIA shares, repay gov't

AP News
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Posted: Sep 06, 2012 11:20 AM

THE SALE: American International Group Inc. is selling part of its stake in Asian insurer AIA Group Ltd. and plans to pay off more of its loans from the U.S. government.

THE PAYOFF: AIG said that proceeds from the sale of up to $2 billion of AIA shares will be used for general corporate purposes. Meanwhile, it also will buy back $5 billion of shares of its stock from the U.S. government.

WHY IT MATTERS: AIG nearly collapsed in 2008. It received $182 billion from the U.S. government after suffering massive losses from investments in derivatives. The Treasury Department currently owns about 53 percent of AIG's stock.