In it’s ongoing effort to right its financial ship, New York-based American International Group Inc. (AIG) has sold another operating unit.
AIG and New York-based Fortress Investment Group LLC announced an agreement under which Fortress will acquire 80% of American General Finance Inc., AIG’s consumer credit division. AGF specializes in providing sub-prime credit to customers in the United States, Puerto Rico, the Virgin Islands and the United Kingdom. Founded in 1920, AGF has assets of approximately $20 billion and liabilities of approximately $18 billion, including $17 billion of debt. Though terms of the transaction were not disclosed, The Wall Street Journal reports Fortress paid only "a small fraction" of AGF's $2 to $3 billion in equity.
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