AIG Reaches Agreement To Repay $182B Bailout

Law360, New York (September 30, 2010, 4:44 PM EDT) -- American International Group Inc. has hammered out a plan to repay U.S. taxpayers for its government bailout, offering to convert $49.1 billion in AIG preferred shares held by the U.S. Treasury into AIG common stock representing a 92.1 percent stake in the insurer.

The U.S. government and the insurer unveiled the plan Thursday. After the exchange is completed, the U.S. Treasury will, over time, sell its stake in AIG on the open market and attempt to recoup its investment in AIG's $182 billion bailout, according to...
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