AIG Developing Strategy to Repay U.S. Taxpayers
Those who wrote the insurance giant AIG off as being the “Worst Company in America in 2009” have to take back at least some of what was said. Recentlyoutgoing Chief Executive Officer Edward Libby stated thatAmerican International Group Inc., the mega-insurer bailed out by the billions courtesy of the U.S. taxpayers, stands an ‘excellent chance’ of repaying the loans issued by the U.S. Government.
AIG has received$182.5 billion from a total combination of four loans. When Liddy spoke before Congress in May, he estimated that AIG would be able to repay the government over five years. The company’s strategy for repayment includes targeting the total line of credit and a$40 billion stock investment. The money for repaying the debt would come by selling units or holding stock offerings for businesses.
As part of the terms of the U.S. loans, AIG turned over a majority stake to the U.S. government. Additionally, they have rolled up their sleeves and have done the hard work of analyzing their business sectors and according to Liddy,”We have determined the destinies of nine of our major businesses spanning everything from life insurance in Taiwan to global real estate, and have specific plans for each of those nine.”
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