U.S. Looking at Recoup as it Sells $5 Billion of AIG Stock

It was revealed on Monday that the U.S. Treasury is attempting to make up the cash it spent bailing out American International Group

in 2008 by selling roughly $5 billion in shares, reducing its stake to 63%. AIG is having a good quarter and has seen its stock price rise dramatically. In 2012, it has gone up 41.5% and, as a result, the U.S. government was able to price 164 million shares that it plans to let go at $30.50 each. It is planning to sell the shares on Monday. The trade should make for welcome reading for AIG itself, who will then see its debt to American taxpayers reduced to $39 billion from the huge sum of $182 billion that government pledged to the company back in 2008. The government has been very clear in saying that it expects to get all of that money back, and it is definitely on the right track. AIG's net income in the first quarter has jumped up to $3.2 billion, or $1.71 per share, from $1.3 billion, or $0.31 per share, the previous year. The stake held by the government could continue to be reduced over the next month or so Underwriters could decide to purchase roughly 24.6 million more share as part of an over-allotment option.