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AIG Continues to Pay Down TARP Debt

Adam Gault/Thinkstock(WASHINGTON) -- The U.S. Treasury Department Thursday announced that American International Group (AIG) has taken another step to reduce its debt to American taxpayers.  AIG on Thursday submitted a $2.15 billion payment to the Treasury towards a debt that once totaled $180 billion during the country's financial crisis.  Today, AIG's outstanding balance totals $51 billion.

Assistant Secretary for Financial Stability Tim Massad called AIG's payment an "important milestone in [the company's] remarkable turnaround."  

"We continue to make progress in recovering the taxpayers' investment in AIG," Massad added.

Proceeds from AIG's sale of its Nan Shan life insurance subsidiary funded the payment to the Treasury.

To date, the Treasury Department says it has received more than 76 percent of the $412 billion disbursed through the government's TARP program.  Those payments total $313 billion.

Copyright 2011 ABC News Radio

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