AIG, U.S. Move Closer to Deal on Bailout Exit: Sources

American International Group Inc AIG and the U.S. government are moving closer to a deal on how the Treasury Department would exit its investment in the bailed-out insurer, sources familiar with the situation said on Sunday. The situation, however, is still fluid and there are many moving parts, one of the sources said. The plans may be unveiled as early as this week, but the exact timing of an announcement depends on the pace of negotiations, Bloomberg reported. A possible conversion of the Treasury's $49 billion preferred stake in AIG into common stock is one of the options being discussed, Reuters previously reported. Such a conversion, which could start as soon as the first half of next year, would possibly raise the government's stake in AIG to above 90% from nearly 80%. The Treasury would sell its common stake to investors over time. Read the rest here.