NU Online News Service, Sept. 29, 3:36 p.m. EDT
American International Group (AIG). has started speaking with federal stakeholders in the company about a plan to repay taxpayers.
"We have begun discussions with the Federal Reserve Bank of New York, the U.S. Treasury and the trustees of the AIG Credit Facility Trust on a proposed strategy to repay the FRBNY Credit Facility and allow the government to exit its ownership relationship with AIG," said Christina Pretto, an AIG spokeswoman.
AIG's objective remains to "repay taxpayers and position AIG over time as a strong, independent company worthy of investor confidence," she said.
Reportedly, the company has come up with a plan, which needs approval from the government entities overseeing the bailout given to AIG as well as the company's board of directors, according to the Wall Street Journal. The Wall Street Journal said the board was scheduled to meet today.
The government currently owns about 80 percent of AIG after it made $182.3 billion available to AIG via the Troubled Asset Relief Program. AIG said it owed the government $101.2 billion as of June 30.
The plan would include the conversion of AIG shares currently held by the government into common shares to be sold to private investors, according to reports.
According to Bloomberg, AIG Chairman Steve Miller spoke at a Dow Jones private equity conference in New York on Sept. 29 and said there is a "strong possibility" taxpayers would profit from the bailout.
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