Troubled Asset Relief Program: The Government's Exposure to AIG Following the Company's Recapitalization

Assistance provided by the Department of the Treasury (Treasury) under the Troubled Asset Relief Program (TARP), and the Board of Governors of the Federal Reserve System (Federal Reserve) to American International Group, Inc. (AIG) represented one of the federal government's largest investments in a private sector institution. AIG is a holding company that, through its subsidiaries, engages in a broad range of insurance and insurance-related activities in the United States and abroad. As part of GAO's statutory oversight of TARP, this report updates a set of indicators GAO last reported in January 2011. Specifically, GAO discusses (1) trends in the financial condition of AIG and its insurance companies, (2) the status of the government's exposure to AIG, and (3) trends in the unwinding of AIG Financial Products (AIGFP). To update the indicators, GAO primarily used available public filings as of March 31, 2011, and more current publicly available information; reviewed rating agencies' reports; and identified critical activities and discussed them with officials from Treasury, the Federal Reserve, and AIG. Treasury, the Federal Reserve, and AIG provided technical comments that GAO incorporated, as appropriate.