AIG Expects to Repay Government Before 2013 Deadline
American International Group Inc.’s chief executive, Robert Benmosche, in an intervew with Reuters on Thursday, April 1, 2010, expressed confidence in his company’s ability to pay off its federal loans before the expiration of the credit line in 2013.
AIG faced near collapse in 2008 before the federal government intervened with a $182.3 billion rescue. Since that time, the company has been selling its assets to repay the debt.
The sale of AUA to Prudential Plc and American Life Insurance Co (Alico) to Metlife, Inc. will, according to Benmosche, put AIG in a position to begin formal discussions with the government about resolving its debt.
Although Benmosche said the company has not locked in a specific debt for repayment, “We think over the next 12 to 18 months we can see our way clear to working through some of our issues.The most important thing is to raise enough money so that we can pay back the Federal Reserve.”
On Thursday, the government named two additions to the AIG board, Donald Layton, former chief executive of E-Trade Financial, and Ronald Rittenmeyer, former chief executive of Electronic Data Systems.
Benmosche said the government’s relationship with AIG is like that between any creditor and lender. “We run the company, they just keep an eye on things and make sure everything’s OK.”