This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

AIG Looks to Speed Up Exit Plan - Report

NEW YORK ( TheStreet) -- American International Group (AIG - Get Report) is in talks with its government overseers to speed up an exit plan designed to repay U.S. taxpayers, the Wall Street Journal reports.

Under the plan, which could begin as early as the first half of 2011, the Treasury Department is likely to convert $49 billion in AIG preferred shares it holds into common shares, bringing the government's stake in AIG to above 90%, from 79.8% currently, the Journal reports, citing people familiar with the matter. The common shares would then be sold to private investors, a move that would reduce government ownership.

The Treasury Department's successful exit from AIG would take several years and is far from certain, depending on such things as market conditions.

Two years ago this week, the Journal notes, the U.S. government rescued AIG from near collapse, and more than $120 billion of taxpayer support is still outstanding, including loans from the Federal Reserve Bank of New York and $49 billion AIG received from the Treasury's Troubled Asset Relief Program.

-- Written by Joseph Woelfel



>To contact the writer of this article, click here: Joseph Woelfel

>To submit a news tip, send an email to: tips@thestreet.com.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AIG $56.80 -0.34%
AAPL $130.40 -1.70%
FB $80.74 -1.40%
GOOG $553.67 -0.31%
TSLA $230.44 -0.48%

Markets

DOW 18,110.14 +72.17 0.40%
S&P 500 2,114.76 +5.84 0.28%
NASDAQ 5,055.4220 -4.8240 -0.10%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs