NEW YORK (Reuters) - American International Group Inc (AIG.N), which has received more than $150 billion in taxpayer support since last September, has closed a deal to access nearly $30 billion in additional federal funds.
In a filing with the U.S. Securities and Exchange Commission on Monday, AIG said it would issue and sell to the U.S. Treasury 300,000 preferred shares, including warrants to purchase common stock, in exchange for up to $29.835 billion.
The original amount agreed in early March was $30 billion, but officials subtracted $165 million in retention bonuses paid to employees of the AIG Financial Products unit last month.
The bonuses set off a maelstrom of protest across the United States. The financial products unit is blamed for most of the red ink at AIG, and taxpayers balked at executives of the unit being paid extra while the nation grapples with rising unemployment and recession.
AIG got a taxpayer bailout last September after bad mortgage bets taken by AIG Financial Products left the giant insurer with deep losses and short of cash to meet collateral commitments to counterparties.
Reporting by Lilla Zuill; editing by John Wallace