AIG, Treasury Pick 4 Banks for Stock Sale

NEW YORK ( TheStreet) -- The Treasury Department and American International Group ( AIG) have picked four banks to handle efforts to divest the government's huge stake in the insurer, according to multiple media reports.

According to the Wall Street Journal, New York Times and others, the chosen firms are Bank of America ( BAC), Deutsche Bank ( DB), Goldman Sachs ( GS), and JPMorgan Chase ( JPM).

AIG shares closed Tuesday at $53.17, down 1.5%. Since hitting a 52-week high of $62.87 on Jan. 7, the stock has pulled back 15%.

On Friday, AIG completed a complicated recapitalization that included its repayment of funds owed to the Federal Reserve Bank of New York and the conversion of preferred stock held by the Treasury via its massive bailout of AIG into common shares that equate to roughly 92% of AIG's outstanding common stock.

The New York Times said the banks were chosen as bookrunners after as many as 10 firms made pitches to AIG and Treasury officials last Thursday.

-- Written by Michael Baron in New York.

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