American International Group Inc. (AIG) has released details of its plan to pay back taxpayers for bailing out the mammoth company, gradually allowing the federal government to reduce its various forms of assistance to AIG.
The plan will allow AIG to "concentrate our full attention on managing our businesses for the benefit of all of our stakeholders," said Robert H. Benmosche, president and chief executive officer, in a statement.
But experts have already said the sale of stock has everything to do with timing. If shares are sold quickly, it could drive down the price and reduce the return. Should the Treasury gets rid of its stock in the company rapidly, AIG could face a credit downgrade, the experts said.
Mr. Benmosche said that over the last year AIG has sold non-core units, improved its financial strength, improved liquidity, increased risk management and stabilized core insurance businesses.