NU Online News Service, July 20, 3:29 p.m.EDT

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New York-based insurer American International Group, Inc., saidlate Friday that it has closed on a deal to sell its consumerfinance operations in Mexico. Terms of the deal were notreleased.

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The units consist of AIG Universal, S.A. de C.V., SOFOM E.N.R.and Markcenter Services, S. de R.L. de C.V.

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The sale was made to Desarrollo de Negocios Integrados, S.A. deC.V. and Inversiones DNI, S.A. de C.V., companies related to AfirmeGrupo Financiero and Concorcio Villacero, AIG said.

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In a statement, AIG's Alain Karaoglan, senior vicepresident--divestiture said, "This sale continues the momentum ofAIG's restructuring efforts. We are pleased with the progress thatwe are making with the disposition of our global consumer financebusinesses."

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AIG said the unit, launched in 2005, has a network of 50branches serving approximately 50,000 clients. It offers clients in12 states in the central and northern regions of Mexico personalloans and third party insurance.

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Since it fell into financial trouble last year and accepted agovernment bailout to survive, AIG has been selling off its assetsto pay back government loans that are estimated to be well north of$100 billion.

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According to documents posted on the Web site of the FederalReserve Bank of New York, which has been a leading player in thebailout, Ernst & Young and Morgan Stanley stand to profit fromAIG's misfortune.

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Ernst & Young, performing "certain due diligence services"for the N.Y. Federal Reserve, will receive somewhere between $10million and $40 million.

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Morgan Stanley charged the N.Y. Federal Reserve $4 million foran advisory fee and another $2.5 million per quarter beginning Oct.1, 2008. The bank will also charge fees, to be determined at thetime of the transaction, for work with the sale or restructuring ofassets.

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