Notice is a historical project of the Committee for a Responsible Federal Budget, which tracked the money spent by the 2009 stimulus bill. This site is not regularly updated.

Purchase of AIG Preferred Stock

November 10, 2008
Policy Area: 
Economic Target: 
Action Type: 
Maximum Amount: 
$40.00 billion
Amount Spent: 
$8.78 billion
Deficit Impact: 
$10.90 billion

Purchase of $40 billion in newly-issued AIG preferred shares by Treasury Department under Trouble Asset Relief Program (TARP).

On 3/2/2009, the Treasury announced that it would exchange its "Series D" preferred stock for "Series E" non-cumulative perpetual preferred stock.  This change is intended to improve the quality of AIG's equity and thus its overall market position.

On 1/14/2011, Treasury exchanged the $40 billion of preferred stock for an equivalent amount of common stock, equal to 925 million shares of AIG.


Amount spent indicates credit issued as of 12/7/2012 (  Deficit impact calculated by CRFB, using CBO's practice of estimating costs on a risk-adjusted present value basis.

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 Preliminary Analysis of the President's Budget, the CBO revised its total cost estimate for TARP up by $10 billion, stating that most of the revision comes from an updated estimate of support to AIG. Thus, the subsidy rate for AIG support is now closer to 27%.


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