US may profit from AIG bailout

American International Group (AIG) is seeing plans to free itself of US government support start to come together two years after it was bailed out and expects taxpayers to profit from their investment. AIG is close to finalising a plan for the government to sell its stake in the insurer, which would see the Treasury Department convert $49bn (£31bn) of preferred stake into common shares to be sold over time, chairman Steve Miller said yesterday. AIG also is close to a deal to sell two life insurance units in Japan to Prudential Financial for about $4.8bn in cash, a source familiar with the matter said.