Gulliver added that "under new senior leadership, we have been taking concrete steps to put right what went wrong and to participate actively with government authorities in bringing to light and addressing these matters."
'You Did It'
The U.S. Treasury late on Monday announced a public offering for its remaining 16% stake in American International Group's common shares, with the shares selling for $32.50, which was a 3% discount to Monday's closing price.
After bailouts and commitments by the U.S. government and the Federal Reserve totaling $182 billion in 2008 and 2009, AIG finished repaying the Federal Reserve earlier this year, and the only remaining government investment in AIG is the Series D warrant to purchase up to 2,689,938 AIG shares for a price of $50 a share, that was issued on Nov. 25, 2008, with a term of 10 years. The Treasury also holds the Series F warrant, allowing the government to buy up to 150 AIG shares for a very small price.
The timing of the Treasury's announcement was no surprise to Sterne Agee analyst John Nadel, who said in a report on Tuesday that he "had expected the announcement of estimated losses from Sandy was the critical factor in getting UST out of the stock."
AIG on Friday announced that its early estimate of losses from Hurricane Sandy was $2.0 billion, net of reinsurance, or $1.3 billion after taxes. The company also said it expected to contribute $1 billion in capital to its AIG Property Casualty unit, after the unit had paid $2.4 billion in dividends to the holding company through the first three quarters of 2012.Then on Monday the company announced a deal to sell "up to a 90% stake in International Lease Finance Corporation (ILFC), a non-core asset," to an investor group led by Weng Xianding, chairman of New China Trust Co. Ltd. for roughly $4.75 billion. AIG CEO Robert Benmosche credited the company's employees with achieving "one of the most extraordinary - and what many believed to be the most unlikely - turnarounds in American business history," saying in an internal memo that "you did it."
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