Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEW YORK CITY-AIG said in a regulatory filing Wednesday afternoon it had agreed to retire its line of credit with the Federal Reserve Bank of New York, on which it owed about $21 billion. The insurance giant, which received federal bailouts totaling more than $175 billion in 2008, will use proceeds from the sale of subsidiary American Life Insurance Co. and an IPO on AIA Group Ltd., to repay the line. Both are overseas operations; the ALICO sale closed early last month.

Additionally, the recapitalization agreement signed by AIG, the New York Fed, the Treasury Department and the trustees of the AIG Credit Facility Trust calls for a public offering of stock currently held by the Treasury. The sale would take place in the first half of 2011 and would seek to raise a minimum of $15 billion. It would be the first of several such offerings.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2022 ALM Media Properties, LLC. All Rights Reserved.