Sept 9 (Reuters) - The U.S. Treasury on Sunday said it would sell $18 billion in American International Group stock, reducing its stake in the insurer to just over 20 percent.
The sale comes about four years after the government first rescued the company with a bailout that eventually soared to $182 billion. Following is a timeline of key events:
Sept. 16: The government rescues AIG with an $85 billion bailout, as the company was minutes from bankruptcy.
Sept. 17: The government removes Robert Willumstad as AIG’s chief executive and names former Allstate CEO Edward Liddy to replace him.
Oct. 8: AIG and the Fed reach a deal for another $37.8 billion in liquidity.
Nov. 10: AIG bailout is restructured to include the Troubled Asset Relief Program (TARP) and the creation of the Maiden Lane facilities.
March 2: Bailout is restructured again to give the Fed preferred interests in life insurers ALICO and AIA.
AIG posts a fourth-quarter loss of $61 billion.
May 21: Liddy says he will resign.
Aug. 10: Robert Benmosche, the former CEO of MetLife, takes over as AIG’s chief executive. He will ultimately get the lion’s share of the credit for turning the company around and preventing a fire sale of its assets.
March 1: AIG reaches deal to sell AIA to Prudential for $35.5 billion; the sale later falls apart.
March 8: AIG reaches deal to sell ALICO to MetLife for $15.5 billion; the deal closes later in the year.
Sept. 30: AIG, the Fed and the Treasury agree to a complicated recapitalization deal to repay the Fed and centralize the government’s investment with the Treasury.
Oct. 22: AIG prices the public offering of a two-thirds stake in AIA in Hong Kong, in one of the largest IPOs ever.
Jan. 12: AIG strikes a deal to sell its Taiwanese insurance unit Nan Shan.
Jan. 14: The recapitalization deal closes.
May 11: Treasury launches its first sale of AIG stock, reducing its stake in the company from 92 percent to 77 percent.
Aug. 5: The company says it will hold onto United Guaranty, its mortgage insurance unit whose fate had been undecided.
Shares fall to a 17-month low, having lost half their value over the course of the year on uncertainty about the company’s future.
Aug. 8: AIG sues Bank of America for $10 billion, alleging mortgage fraud, in one of the clearest indications yet AIG intends to fight back against the banks it believes contributed to its decline.
Sept. 2: ILFC, AIG’s aircraft leasing business, files for an initial public offering.
Nov. 21: Former AIG CEO Hank Greenberg sues the U.S. government for $25 billion, alleging the takeover of AIG was unconstitutional.
Feb. 23: After making a determination it has returned to consistent profitability, AIG recognizes nearly $20 billion in tax-related benefits.
Feb. 28: The New York Fed sells the last of the assets in Maiden Lane II, one of the two vehicles it set up to help rescue the company.
June 14: The New York Fed says the last of its bailout-related loans has been repaid with interest.
June 28: AIG says it will rebrand some units that dropped the AIG name during the depths of the crisis, restoring the company’s mark to prominence.
Sept. 9: The Treasury launches its fifth sale of AIG stock, this time for $18 billion, in an offering that will take its stake in the company to around 20 percent.
Sources: Federal Reserve, A.M. Best, company reports