AIG to repay taxpayers, says Robert Benmosche

City A.M. Reporter
AMERICAN International Group is on its way to repaying government bailout money, its boss said, but a US Treasury official warned taxpayers could still face losses.

AIG is operating with $132bn (£92bn) in government support after being rescued by the government in 2008 and early 2009 on fears that an uncontrolled bankruptcy would trigger a broad collapse of the global banking system.

“AIG is now on a clear path to repaying taxpayers,” chief executive Robert Benmosche told a panel overseeing bailouts. “In recent months, we have become less reliant on government aid and have been able to instead tap the capital markets.”

Benmosche and a senior US Treasury official told the Congressional Oversight Panel that AIG’s pending deals to sell two international life insurance units would allow AIG to fully repay $83.2bn.