AIG Strikes Deal to Retire Fed Credit Line, Wind Down Bailout

American International Group Inc. struck a deal to repay the Federal Reserve, the regulator that first bailed out the insurer in 2008, and then focus on retiring obligations to the U.S. Treasury Department.

“It represents a great step forward for AIG and for the taxpayers to effectively narrow the number of counterparties from two to one,” said Clark Troy, senior analyst at Aite Group in Chapel Hill, North Carolina. “We’ve had a number of steps in a row in AIG’s recovery process go off without a hitch.”