Christine
06-14-2012, 08:32 PM
WASHINGTON (MNI) – Th following is the text of statement by
insurance giant AIG Thursday:
American International Group, Inc. (NYSE: AIG) confirmed today
that, as a result of the recently completed auctions by the Federal
Reserve Bank of New York (FRBNY) of certain Maiden Lane III LLC (ML III)
assets, the outstanding loan by the FRBNY to ML III has been fully
repaid. The ML III loan was non-recourse to AIG, and was being repaid
with the cash flows from the interest and principal payments and
liquidation of the assets in the facility.
“The repayment of the Federal Reserve’s Maiden Lane III loan
represents another significant milestone in the transformation of AIG,”
said Robert H. Benmosche, AIG President and Chief Executive Officer. “We
are extremely encouraged by the continued progress our partners at the
Federal Reserve and U.S. Treasury have made to profitably reduce the
U.S. government’s investments in AIG.”
To date, AIG has paid in full the FRBNY Credit Facility, the AIA
SPV preferred interests, and the American Life Insurance Company (ALICO)
SPV preferred interests. In addition, the U.S. Treasury’s stake in AIG
common stock has been reduced by $17.5 billion and the Maiden Lane II
and III loans have been fully repaid. The Federal Reserve has earned
nearly $3 billion from the sale of the Maiden Lane II (ML II) portfolio
and, based on current market values, could earn as much when the ML III
portfolio is fully liquidated.
The maximum support authorized by the U.S. government to AIG
reached $182 billion in 2008, of which $21 billion was unused or
expired. Together with repayments, withdrawals, exchanges, sales, and
other actions, total outstanding government support to AIG has decreased
83 percent, or $152 billion, with approximately $30 billion worth of
shares of AIG common stock owned by the U.S. Treasury as the remaining
investment. It should be noted that the $152 billion decrease only
includes a reduction of original authorized support and not the Federal
Reserve’s profit to date on ML II or the expected profit for ML III.
** MNI Washington Bureau: 202-371-2121 **
[TOPICS: M$U$$$,MK$$$$,MGU$$$,MMUFE$]
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insurance giant AIG Thursday:
American International Group, Inc. (NYSE: AIG) confirmed today
that, as a result of the recently completed auctions by the Federal
Reserve Bank of New York (FRBNY) of certain Maiden Lane III LLC (ML III)
assets, the outstanding loan by the FRBNY to ML III has been fully
repaid. The ML III loan was non-recourse to AIG, and was being repaid
with the cash flows from the interest and principal payments and
liquidation of the assets in the facility.
“The repayment of the Federal Reserve’s Maiden Lane III loan
represents another significant milestone in the transformation of AIG,”
said Robert H. Benmosche, AIG President and Chief Executive Officer. “We
are extremely encouraged by the continued progress our partners at the
Federal Reserve and U.S. Treasury have made to profitably reduce the
U.S. government’s investments in AIG.”
To date, AIG has paid in full the FRBNY Credit Facility, the AIA
SPV preferred interests, and the American Life Insurance Company (ALICO)
SPV preferred interests. In addition, the U.S. Treasury’s stake in AIG
common stock has been reduced by $17.5 billion and the Maiden Lane II
and III loans have been fully repaid. The Federal Reserve has earned
nearly $3 billion from the sale of the Maiden Lane II (ML II) portfolio
and, based on current market values, could earn as much when the ML III
portfolio is fully liquidated.
The maximum support authorized by the U.S. government to AIG
reached $182 billion in 2008, of which $21 billion was unused or
expired. Together with repayments, withdrawals, exchanges, sales, and
other actions, total outstanding government support to AIG has decreased
83 percent, or $152 billion, with approximately $30 billion worth of
shares of AIG common stock owned by the U.S. Treasury as the remaining
investment. It should be noted that the $152 billion decrease only
includes a reduction of original authorized support and not the Federal
Reserve’s profit to date on ML II or the expected profit for ML III.
** MNI Washington Bureau: 202-371-2121 **
[TOPICS: M$U$$$,MK$$$$,MGU$$$,MMUFE$]
http://feeds.feedburner.com/~ff/forexlive-rss?d=yIl2AUoC8zA (http://feeds.feedburner.com/~ff/forexlive-rss?a=vB9_nBVVVQ0:D6wKBv4JPiA:yIl2AUoC8zA) http://feeds.feedburner.com/~ff/forexlive-rss?i=vB9_nBVVVQ0:D6wKBv4JPiA:V_sGLiPBpWU (http://feeds.feedburner.com/~ff/forexlive-rss?a=vB9_nBVVVQ0:D6wKBv4JPiA:V_sGLiPBpWU) http://feeds.feedburner.com/~ff/forexlive-rss?d=qj6IDK7rITs (http://feeds.feedburner.com/~ff/forexlive-rss?a=vB9_nBVVVQ0:D6wKBv4JPiA:qj6IDK7rITs)