The Treasury Department announced Sunday that it is getting ready to sell $18 billion of the stock it purchased in American International Group, a move that will result in the government owning less than 20% of the insurance conglomerate.
AIG is the parent United Guaranty Inc., one of the largest mortgage insurance firms in the nation, measured by new policies written. AIG, at one time, also controlled subprime lender American General, which is now majority owned by Fortress Investment Group, a publicly traded hedge fund.
AIG, a market leader in credit default swaps covering subprime MBS, almost collapsed in 2008. The U.S. pumped $182 billion into the firm to keep it afloat.
The insurer has posted a net profit the past two years and is on track to earn roughly $7 billion this year. CEO Robert Benmosche said recently the firm is on track to repay all of the $182 billion.