AIG pays off bailout loans to Fed

Published June 14, 2012 8:04pm ET



NEW YORK (AP) — Beleaguered insurance giant American International Group is paying off all of the bailout loans it received from the Federal Reserve Bank of New York.

The bank said Thursday that AIG repaid the loans — totaling $53.12 billion— with interest.

The government stepped in with a $182.5 billion package to rescue New York-based AIG from collapse in the depths of the financial crisis in 2008. It was the largest bailout in history. The Treasury Department provided $68 billion under its financial bailout program, and the New York Fed gave AIG a $114 billion lifeline.