Treasury Sells More of its AIG Stock

Government's stake in company drops to 55 percent.

The U.S. Treasury Department on Friday sold $5 billion worth of shares in American International Group Inc., taking another step toward winding down the insurer's controversial bailout.

AIG agreed to buy $3 billion of Treasury's latest public offering, which was launched Friday afternoon and priced a few hours later. The shares were sold at $30.50 apiece, above the government's cost basis of $28.73 a share, meaning taxpayers will earn a profit on the sale.