Posted on 29 Sep 2010
American International Group Inc.'s (AIG) company board is meeting today and are nearing completion on the plan that will allow the bailed-out insurer to repay taxpayers, said Chairman Steve Miller.
"We're nearing the conclusion," Mr. Miller said at the Dow Jones Private Equity Analyst conference in New York. The solution "will be a win-win all around."
AIG's board has been working with the U.S. Treasury Department and the Federal Reserve Bank of New York for months on a plan that will allow the government to convert its preferred shares in the company to common stock. That would raise the government's ownership stake in AIG to about 90%.
Under the plan, the government would than slowly sell off its shares to the private market, Mr. Miller said.
The company is "on the path for getting us off the government dole," Mr. Miller said. He said he hopes taxpayers will not only be repaid in full, but he sees a "strong possibility of significant profit to taxpayers for taking this journey with us."