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AIG Chairman Says Company Grateful to US Taxpayers

Source: Dow Jones

Posted on 12 May 2010

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In remarks at American International Group Inc.'s (AIG) annual meeting, Chairman Harvey Golub said the company is grateful to U.S. taxpayers for funding the massive 2008 bailout for the company.

Golub also said the company has made "substantial progress" in the past year.

During that time, the company has sought to wind down derivative contracts that were a major factor in its near collapse, and reach deals to sell units to pay back the government support it received.

AIG currently owes the Federal Reserve Bank of New York about $27 billion, including accrued interest and fees. Last month it tapped some of this money to help repay $2.3 billion in commercial paper that matured. The New York Fed also owns $25 billion worth of equity in the two life insurance businesses that AIG has agreed to sell to repay taxpayers. The government-controlled insurance giant has also drawn about $49 billion in funds from the U.S. Treasury.

AIG swung to a first-quarter profit of $1.45 billion.