Details of a plan to expedite the sell-off of the government’s stake in New York-based
Citing unnamed sources with knowledge of the negotiations between the company and regulators, the announcement may entail AIG converting $49 billion in preferred shares currently held by the Treasury into common shares sometime in early 2011. Treasury would then sell the shares on the open market, using any profit recognized to help repay the government for the assistance the company received during the financial crisis.
If it happens, the move would be the latest the latest in a series of moves made by AIG President and CEO Robert Benmosche to hasten payback of the estimated $120 billion in government assistance still outstanding.
In August, AIG and New York-based