On the heels of last week's successful $2 billion debt offering,
Last Tuesday, AIG sold $500 million in 3-year notes and $1.5 billion in 10-year paper. The sale was the first time the insurer had issued new bonds since it was rescued by the federal government in 2008.
Additionally, AIG unit International Lease Finance Corp. (ILFC) also issued 10-year senior bonds worth $1 billion. Reuters reports that after AIG completes a recapitalization deal in the first quarter, it will be 92.1% owned by the U.S. Treasury, and will still owe taxpayers about $100 billion from its roughly $182 billion bailout.
The CBO noted that total cost of the program, which provided assistance to several other financial institutions, the auto market and other programs, will be about $25 billion over the life of TARP. This amount is “substantially less” than the $109 billion estimated in March (in its March report, CBO estimated that TARP assistance to AIG would cost about $36 billion over the life of the program).