AIG Equity Capital Facility
Date:
March 2, 2009
Policy Area:
Financial Sector Policy
Economic Target:
AIG
Action Type:
Equity Purchase
Maximum Amount:
$29.84 billion
Amount Spent:
$7.54 billion
Deficit Impact:
$8.10 billion The Treasury will allow AIG to receive up $30 billion dollars in exchange for AIG preferred stock. Actions taken in coordination with a restructuring of the Fed's line of credit to AIG.
On 1/14/2011, after AIG repaid the New York Fed's credit facility, Treasury transferred part of this facility into 167 million shares of common stock, using the remaining money to hold $20 billion in AIG subsidiaries.
Notes:
Maximum amount specified in Treasury term sheet. Amount spent current as of 3/21/2012, as reported in Treasury transaction reports.
Deficit impact is derived from CBO's overall subsidy rate for assistance to AIG (13%), as listed in CBO's January 2010 baseline. However, in its November 2010 Report on TARP, CBO estimated that the total cost of AIG assistance would be $14 billion. It is unclear how the deficit impact breaks down between the two types of assistance.