NU Online News Service, Nov. 23, 3:54 p.m.EST

There are continued signs of American International Group (AIG)reentry into the capital markets as the company announced two newmanagers and the U.S Treasury Department said it hired aninvestment banking firm.

According to a contract posted on its website, the Treasuryhired Greenhill & Co. to provide services related to thegovernment's investments in AIG.

Greenhill will be paid a monthly fee of $500,000 for the firstyear and then $175,000 per month following that for providing"ongoing analysis and ideas regarding management and disposition ofthe AIG investments, market conditions, industry analysis,portfolio risks, asset valuations" and other services as well as to"ensure portfolio strategies are not executed at cross purposes inthe market," the agreement states.

Meanwhile, AIG said it appointed Brian T. Schreiber as executivevice president, treasury and capital markets. Additionally, RobertGender was named senior vice president and treasurer.

Mr. Schreiber, who has been with AIG since 1997, was head ofstrategic planning and led the company's restructuring andcorporate development efforts to date, AIG said in a statement. Hisexperience in the capital markets and knowledge of the company'sbusiness "will help AIG re-enter the capital markets and achieveour future objectives," said Peter Hancock, executive vicepresident of finance, risk and investments.

Earlier this month, in a series of filings with the Securitiesand Exchange Commission, AIG submitted adjusted financial statements in connection with itsplan to get back in the capital markets.

AIG will own less than 8 percent of its common stock once ituses $22 billion in available Troubled Asset Relief Program fundsto purchase an equal amount of interest in each special purposevehicle (SPV) holding AIA Group Ltd. and American Life InsuranceCompany (ALICO). AIG will then give the interest in the SPVs to theTreasury, which will allow the Treasury to sell stock to thepublic.

This could happen at the same time AIG offers its IPO.

The Treasury, which had owned 80 percent of AIG after thebailout two years ago, is to own 92.1 percent of the common stockof AIG after it converts the $49.1 billion of preferred shares ithas under TARP into about 1.66 billion shares of common stock.

AIG previously said it raised enough money from its sale of ALICO to MetLife Inc.and an initial public offering of AIA Group Ltd. in Hong Kong torepay a line of credit with the Federal Reserve Bank of NewYork.