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AIG Plans to Repay U.S. in 2009 

 
Published 2/1/2009   » More From This Issue

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American International Group Inc. plans to repay the $60 billion bridge loan it received from the U.S. government this year, CEO Edward Liddy recently told CNBC.

In 2008, the New York-based company received a government bailout, including the purchase of preferred shares, worth a total of about $150 billion to prevent losses at banks that did business with the insurer.

Liddy sold several of the firm’s businesses, including life insurance, retirement services, and a plane-leasing unit, to repay the U.S. loan. Responding to criticisms over the cash awards given to more than 2,000 employees in order to dissuade them from quitting, he has said that the payments are necessary and have already been disclosed to authorities in regulatory filings.

Rep. Elijah Cummings has requested that Liddy testify in a congressional hearing about the “full extent” of the company’s program to keep workers.

Cummings, a member of the House Committee on Oversight and Government Reform, has said AIG misled him about the scope of its retention plan.



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