Treasury Considered Letting AIG File for Chapter 11

The Treasury department considered letting AIG file for bankruptcy, according to documents obtained by FOX Business.

The documents consist of e-mails about AIG between officials at the Treasury Dept. and the Fed, as well as with two attorneys from Davis Polk & Wardwell LLP — if you recall, in February, it was widely reported that AIG retained the above-mentioned law firm to prepare a possible company bankruptcy should its talks with the government go south.

In an e-mail dated Jan. 29, Sarah Dahlgren, a senior vice president with the Federal Reserve Bank of New York, wrote a Treasury counselor, Stephen Albrecht, “Steve – I didn’t see your name on the invite list and wanted to make sure that you knew that Marshall and Ethan were going to lead a discussion tomorrow on bankruptcy.”

“Yes, I’ll be on the call,” Albrecht responded, according to the document.

In another e-mail dated Feb.5, the subject line reads, “Conf call re AIG bankruptcy options.” [foxbusiness]

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