AIG reaches agreement for exit plan

From the FINANCIAL TIMES:

… “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 US Treasury to exit its ownership of AIG over time.”…

Meanwhile, AIG, which has $49.1bn of Tarp preferred shares outstanding, will give the Treasury 1.655bn shares of its common stock. It will also issue up to 75m warrants with a strike price of $45 a share to existing common stockholders. …

“The exit strategy announced today dramatically accelerates the timeline for AIG’s repayment and puts taxpayers in a considerably stronger position to recoup our investment in the company,” said Tim Geithner, US Treasury secretary…

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Updated: September 30, 2010 — 12:20 pm
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