WASHINGTON–The Federal Reserve Board of New York has named threetrustees, including Jill Considine, a former New York bankingcommissioner, to control the government's 79.9 percent share ofAmerican International Group.

Ms. Considine is currently on the board of troubled bond insurerAmbac. The other trustees are Chester B. Feldberg, former chairmanof Barclays Americas, and Douglas L. Foshee, president and chiefexecutive officer of El Paso Corp.

The New York Fed said the appointments were made with the fullsupport of the Treasury Department.

The new trustees will control the taxpayers' stake in AIGthrough the so-called “AIG Credit Facility Trust.”

Appointment of independent trustees to manage the government'sshare of AIG stock was part of the Sept. 17 agreement with AIGunder which the government loaned the company $85 billion in orderto stave off its collapse.

The agreement has since been modified to continue for up to fiveyears while AIG sells insurance and other subsidiaries on anorderly basis to pay the government loan.

The trustees will have absolute discretion and control over theAIG stock, subject only to the terms of the Trust Agreement, andwill exercise all rights, powers and privileges of a shareholder ofAIG, the New York Fed said in a statement issued Friday.

The trustees will not sit on the board of directors of AIG.Day-to-day management of AIG will remain with the persons “chargedwith such management,” the New York Fed said in its statement.

The present chief executive officer of AIG is Edward Liddy,former chairman and CEO of Allstate.

The statement added that, to avoid possible conflicts with theNew York Fed's supervisory and monetary policy functions, the trusthas been structured so the New York Fed “cannot exercise anydiscretion or control over the voting and consent rights associatedwith the equity interest in AIG.”

The Fed said it will, however, continue to monitor closely thefinancial operations of AIG in connection with its role aslender.

Ms. Considine also serves as a senior advisor of the DepositoryTrust Company and was its chairman from 1999 to 2007.

Prior to joining DTC in January 1999, she was president of theNew York Clearing House Association. Before joining the ClearingHouse, she had been managing director and chief administrativeofficer at American Express Bank Ltd since 1991 and a member of itsboard of directors.

She served as New York superintendent of banks from 1985 to1991.