* Treasury's AIG stock holding drops to zero
* Held 1.655 bln shares in Jan 2011
Dec 14 The U.S. Treasury Department said on
Friday it has completed its final sale of common stock in
American International Group, reducing its shares in the
insurer to zero four years after a massive government bailout.
Treasury said it received $7.6 billion in proceeds from the
sale of its remaining 234 million shares at $32.50 per share.
Overall, Treasury and the Federal Reserve received a $22.7
billion positive return on their combined $182.3 billion
bailout, the department said.
"Today officially begins a new chapter at AIG," Chief
Executive Robert Benmosche said in a statement.
The sale is part of Treasury's efforts to wind down its
Troubled Asset Relief Program (TARP), created in 2008 to help
rescue companies stricken by the financial crisis.
More than 90 percent ($380 billion) of the $418 billion
disbursed for TARP has already been recovered to date through
repayments and other income, Treasury said in a statement.
AIG was rescued just before it would have been forced to
file for bankruptcy, as losses on risky derivatives mounted. It
was bailed out as the financial system stood at the brink of
disaster, shortly after Lehman Brothers filed for bankruptcy and
Merrill Lynch sold itself to Bank of America.
AIG shares were down 0.7 percent to $34 in midday trade on