Treasury Department: AIG in better shape to repay bailout
WASHINGTON (AP) — Insurance giant American International Group Inc. is better positioned to pay back all of its $182 billion federal bailout, a key Treasury official plans to testify later today.
But AIG's ability to repay taxpayers depends on its future profitability and the insurance industry's strength, Treasury chief restructuring officer Jim Millstein says in his prepared testimony.
He says AIG must complete the planned sales of two large insurance subsidiaries and regain the market's confidence.
"It will take time to repair full the damage to their franchises, particularly in the United States," Millstein says.
AIG received the largest bailout of any company during the financial crisis that crested in September 2008. The company could not meet its financial obligations after selling guarantees on mortgage-related investments that later lost value.