Treasury will sell $5 billion shares of AIG stock

In addition to principal repayments, the Federal Reserve and Treasury also have received additional income beyond that from interest, fees and other gains totaling $14 billion, including approximately $13 billion from the Federal Reserve’s investment and approximately $1 billion from Treasury’s investment.

The underwriters also have a 30-day option to purchase up to an additional $675 million in common stock from Treasury.

After the sale the Treasury will own 55 percent of the firm's common stock. 

The sale decision comes on the heels of AIG's announcement on Thursday that its net income was up 27 percent in the second quarter.