Bloomberg News reports that American International Group Inc. (AIG), is in talks with government officials to become independent.
The insurer that turned over a majority stake to the U.S. as part of its bailout, has — according to Bberg sources — delivered to the Treasury Department a plan that includes replacing the government’s stake with private ownership.
“We have commenced discussions with the U.S. government on the process and terms of a complete government exit,” Benmosche told employees today in a memo. “Depending of course on market conditions, which could remain volatile, we expect to make meaningful progress in 2010 on repaying the Federal Reserve Bank of New York, and over time fully repaying all of our obligations to taxpayers.”
AIG nearly collapsed in 2008 as a result of derivative-based guarantees on mortgage-related securities that the insurer sold during the credit boom. The government bailed the company out by injecting more than $180 billion in tax dollars and now owns 80% of the business.