"We believe most bulls believe sale proceeds will be used to fund share repurchases in 2H13," Nadel wrote, adding "we still believe this may be a faulty assumption given unknowns around SIFI rules/regs."

"SIFI" stands for systemically important financial institution, which is a designation that requires U.S. financial holding companies to undergo annual Federal Reserve stress tests, while also submitting annual capital deployment plans to the Fed for approval. The Financial Stability Oversight Council is expected to meet on Monday and decide whether or not AIG will be considered an SIFI. That designation seems very likely, considering AIG's massive government bailout beginning in 2008, which was eventually fully repaid, with the government claiming a significant profit.

Nadel has a neutral rating on AIG, with a $46 price target.

AIG Chart AIG data by YCharts

Interested in more on American International Group? See TheStreet Ratings' report card for this stock.

-- Written by Philip van Doorn in Jupiter, Fla.

>Contact by Email.

Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.

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