LOS ANGELES (AP) — Shares in American International Group Inc. tumbled on Monday, deepening a slide that's brought the insurer's shares to the lowest point since March 2010 and stoked concerns over whether the U.S. government will be able to make a profit off an upcoming sale of AIG stock.
THE SPARK: The global insurance company, based in New York, has seen shares drop by about half since hitting a high of $61.18 on Jan. 7. The stock price slide comes as AIG and the Treasury Department prepare to sell shares in the company later this month.
THE BIG PICTURE: AIG received a $182 billion bailout from the Treasury Department in 2008 as the U.S. government stepped in to save it from collapse. In March, AIG paid the Treasury Department nearly $7 billion, trimming its outstanding balance to just under $60 billion.
The Treasury Department still owns about 92 percent of AIG through its holdings of the company's common stock and has said it expects to recover the full bailout amount.
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