AIG (American International Group, Inc.) said that it came to an agreement with the Treasury Department and the Fed to make a big step forward in paying off loans that were used to bail the company out, according to a statement from the Treasury Department on Wednesday.
At one time, the loan was worth more than $180 billion, which was the largest bailout during the financial crisis.
"Our filing today that we have signed the definitive recapitalization agreement with the government marks an important step forward in our progress toward completely repaying taxpayers,” AIG stated.
AIG entered into a transaction agreement with the Federal Reserve Bank of New York to accelerate paying back taxpayer funds, the Treasury proclaimed.
“Today’s announcement is a milestone in the government’s long-stated efforts to exit our investments in private companies as soon as practical while protecting taxpayers,” Acting Assistant Secretary for Financial Stability Tim Massad said.
Massad added that, under the new deal, it is likely "taxpayers will recover every dollar invested in AIG and stand a good chance of making a profit."
