By Peter Schroeder - 01/14/11 05:49 PM EST
"Treasury welcomes the culmination of AIG’s recapitalization plan, which is a vital part of that company’s turnaround and puts Treasury in an excellent position to begin realizing value for taxpayers," he said in a statement. "Treasury remains optimistic that taxpayers will get back every dollar of their investment in AIG."
The announcement serves as a light at the end of the tunnel for the government's rocky history with the troubled insurance firm, which came to bear the brunt of public and political anger over Wall Street bailouts when it was revealed that it paid out hefty bonuses to employees after being rescued by the government during the financial crisis.
The Treasury's cash investment in AIG now totals $68 billion, which the government plans to wind down as it sells off its investment. The exact timeframe for the withdrawal remains subject to market conditions, the Treasury said.