AIG Announces Plan to Repay U.S. Government (AIG)

American International Group Inc. AIG announced today that it has entered into an agreement-in-principle with the U.S. Department of the Treasury, the Federal Reserve Bank of New York, and the AIG Credit Facility Trust designed to repay all its obligations to American taxpayers and position AIG as strong, independent, and worthy of investor confidence. “This is a pivotal milestone as we deliver on our long-standing promise to repay taxpayers, and we thank the American people for their support,” said Robert H. Benmosche, AIG President and Chief Executive Officer. “We are very pleased that this agreement vastly simplifies current government support of AIG, sets forth a clear path for AIG to repay the FRBNY in full, and sets in motion the steps for the U.S. Treasury to exit its ownership of AIG over time. The plan involves three key components: 1. Repaying and Terminating the FRBNY Credit Facility with AIG 2. Facilitating the Orderly Exit of the U.S. Government's Interests in Two Special Purpose Vehicles (SPVs) That Hold AIA and ALICO 3. Retiring AIG's Remaining TARP Support and Series C Preferred Shares