In September, the Treasury Department made an offering of $20.7 billion toward the American International Group, Inc. (AIG) bailout, signifying a full payback. This important milestone marks the accomplishment of avoiding financial panic and a full recovery of the $182 billion commitment made to stabilize AIG.
The Treasury Department and Federal Reserve committed a combined total of $182 billion to not only stabilize AIG, but to prevent a second Great Depression. Despite the relief and the fully restored commitment, some say the bailout was something the government should have never had to do.
“Many Americans look at what happened with AIG, and the rest of the financial rescue, and simply ask: Why was it necessary? Why was it fair for the government to take taxpayer money and put it into an institution that had mismanaged itself to the edge of collapse?” Secretary Timothy Geithner stated in early 2010.
Secretary Geithner recently stated that although the financial restoration for AIG is a significant accomplishment, further reform is needed on Wall Street so “the American economy is never put in this position again.”
For further reading: http://www.treasury.gov/connect/blog/Pages/aig-182-billion.aspx