An insurance analyst, calling the meltdown of AIG a "staggering development," said the Federal Reserve Board statement that the carrier will pay off its federal loan from the sale of businesses suggests the majority of the company may be sold off in pieces over the next 24 months.
Specifically, the latest developments in the AIG debacle imply that "the formerly largest global insurance company will potentially be unwound through a one-to-two-year auction process," Thomas Gallagher and Michael Zaremski of Credit Suisse research in New York said in a note to investors.
Moreover, AIG's problems means there will be plenty of "high-quality businesses for sale, notably international life insurance, foreign general, and the domestic retirement business sold through the Variable Annuity Life Insurance Company, a unit of the American General unit of AIG," Mr. Gallagher and Mr. Zaremski said.
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