U.S. government reduces holdings in AIG

NEW YORK (AP) — The U.S. government is no longer the majority owner of American International Group Inc.

The bailed-out insurance company says the Treasury Department wrapped up a planned sale of AIG stock, netting the government roughly $20.7 billion.

The government’s sale of 636.9 million shares in AIG puts its holdings in the insurer below a majority stake for the first time since the $182 billion bailout during the financial crisis in 2008.

New York-based AIG said the Treasury now owns about 16 percent of its stock, down from 53 percent.

AIG nearly collapsed in 2008 after suffering massive losses from derivative trades.

The government’s sale of AIG shares was bigger than expected. On Monday, the Treasury said it would sell 54 million shares and raise approximately $18 billion.

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