AIG reaches deal to repay bail-out funds - KWWL - Eastern Iowa Breaking News, Weather, Closings

AIG reaches deal to repay bail-out funds


NEW YORK (AP) -- AIG says it has reached a deal to repay billions of dollars it received from the federal government during the credit crisis.  The plan announced Thursday could return a profit to taxpayers who footed the bill for AIG's near collapse in September 2008.

New York-based AIG was one of the hardest hit financial companies by the credit crisis and received the largest bailout the government doled out. It received a bailout package worth as much as $180 billion from the government, which received an 80 percent stake in the company in return.

AIG shares rose 5.5 percent in morning trading. If the government is able to sell shares at the current trading price, it will make more than $16 billion in profit.

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