WASHINGTON, March 15 (Reuters) - American International Group , the insurer that received a taxpayer bailout of up to $180 billion, said on Sunday it used $12.1 billion of those funds to make payments on Guaranteed Investment Agreements held by cities across the country.
California municipalities received the most -- $1.02 billion -- in the contracts, which are structured investments that guarantee a fixed rate of return, AIG documents showed. Cities buy the agreements with proceeds from their bond sales as they wait to spend the money on civic projects.
Virginia cities received the next largest amount -- $1.01 billion -- and cities in New York state received $210 million, AIG said.
The company disclosed the payments as part of a broader announcement of counterparties that received funds, and it only listed payments made between Sept. 16 and Dec. 31 of last year.
(Reporting by Lisa Lambert; Editing by Phil Berlowitz) Keywords: FINANCIAL AIG/MUNIS (lisa.lambert@thomsonreuters.com; +1-202-898-8328; Reuters Messaging: lisa.lambert.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
California municipalities received the most -- $1.02 billion -- in the contracts, which are structured investments that guarantee a fixed rate of return, AIG documents showed. Cities buy the agreements with proceeds from their bond sales as they wait to spend the money on civic projects.
Virginia cities received the next largest amount -- $1.01 billion -- and cities in New York state received $210 million, AIG said.
The company disclosed the payments as part of a broader announcement of counterparties that received funds, and it only listed payments made between Sept. 16 and Dec. 31 of last year.
(Reporting by Lisa Lambert; Editing by Phil Berlowitz) Keywords: FINANCIAL AIG/MUNIS (lisa.lambert@thomsonreuters.com; +1-202-898-8328; Reuters Messaging: lisa.lambert.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.