Treasury Sells $6 Billion in AIG Stock, Scaring Off Investors

American International Group

is down roughly 3% during pre-market trading after the U.S. Department of the Treasury announced an offering of $6 billion of its AIG common stock.

An additional $900 million of its stock in AIG may be offered as well, as the Treasury said that it will also grant this option to the underwriters. “The bottom line is this: the people of AIG have achieved another significant milestone in our progress toward our goal that American taxpayers recoup their entire investment in AIG at a profit,” Robert H. Benmosche, AIG President and Chief Executive Officer, said in a company release. “With today's agreement with Treasury on the AIA SPV, we are on a clear path to extinguish the AIA SPV and we will achieve a meaningful increase in our financial flexibility with the release of the extra collateral that was supporting the AIA SPV. We are very pleased with our progress to date and look forward to building on our momentum.”