WASHINGTON – Today, American International Group Inc. (AIG) announced that it has reached an agreement-in-principle with the US Department of the Treasury, the Federal Reserve Bank of New York, and the trustees of the AIG Credit Facility Trust to restructure the company, putting it in a stronger position to repay taxpayers.
The Treasury Department welcomes the plan announced today by AIG to accelerate its exit from government support and reposition itself as an independent, privately owned company over time.
"The exit strategy announced today dramatically accelerates the timeline for AIG's repayment and puts taxpayers in a considerably stronger position to recoup our investment in the company," said Treasury Secretary Tim Geithner. "While there is a lot of work ahead to execute the terms of this agreement, today we are much closer to seeing a clear path out. AIG's Board of Directors and new management team deserve credit for the substantial progress they've made to lower the company's risk profile, refocus it around core insurance businesses, and put it in a better position to pay back taxpayers."