Treasury's AIG Share Sale Makes Taxpayer Minority Shareholder, Almost

American International Group Inc. (NYSE: AIG) has completed its third round of shares being sold by the government (ergo, the taxpayer).  This third share sale went off far better than others.  We even noted that the Treasury could have (and maybe should have) sold more stock than the $5.75 billion sold on Monday.

Here is the biggest news: It is almost hard to fathom but the United States Treasury is nearly becoming a minority shareholder.

This week’s share sale reduced Uncle Sam’s remaining investment in AIG down to about 871.1 million shares of common stock.  In turn, that is now a percentage of ownership that went from about 61% down to about 53%.  After this offering, Uncle Sam has sold roughly 784 million common shares in AIG and it has received back some $23.3 billion since May of 2011.

CEO Robert Benmosche has been a very capable and effective leader of AIG.  He has managed to do well for the taxpayers, and it is during a time when he has cancer.  The next share sale will make the Treasury (that is the taxpayer’s money) a minority AIG shareholder.

JON C. OGG