Deals
AIG Said to Weigh Using Bond Stake to Repay U.S.
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American International Group Inc. is considering repaying part of its U.S. bailout by handing over stakes in the mortgage-linked bonds that pushed the firm to the brink of collapse, said three people with knowledge of the plan.
The assets are contained in Maiden Lane II and Maiden Lane III, entities created in 2008 as part of the U.S. effort to remove toxic securities from the firm. AIG’s proposal reflects the insurer’s confidence in the rebound of these holdings, said the people, who declined to be identified because the plan hasn’t been approved. AIG valued the stakes at $6.2 billion as of March 31, $900 million more than at the end of 2009.