Gains Likely from Sale of AIG Warrants, Treasury Unit Says in Report to Congress

The Treasury Department expects to profit from the upcoming sale of warrants to buy shares of American International Group (AIG), the Financial Stability Oversight Board said in a March 25 report to Congress.

The U.S. government has now sold all remaining shares of AIG it purchased during the financial crisis of 2008, reaping a total of $22.7 billion in profit from those sales.

The government still holds warrants to purchase roughly 2.7 million shares of AIG common stock, and expects taxpayers to benefit when the warrants are sold as well, the Stability Board said in the 42-page report on activities ...