AIG Repays Nearly $4 Billion on Federal Loan

Payment represents single largest cash reduction

More On Legal & Compliance

from The Advisor's Professional Library
  • The Few and the Proud: Chief Compliance Officers CCOs make significant contributions to success of an RIA, designing and implementing compliance programs that prevent, detect and correct securities law violations.  When major compliance problems occur at firms, CCOs will likely receive regulatory consequences.    
  • Regulatory Oversight of Investment Advisors Although the regulatory environment is in a state of flux, it is imperative that RIAs adhere to their compliance obligations. To ensure compliance, RIAs and IARs must fully understand what those obligations are.
AIG announced Monday, Augusut 23, that it has repaid almost $4 billion to the Federal Reserve Bank of New York. International Lease Finance Corporation, a subsidiary of AIG, sold $4.4 billion in secured and unsecured notes to make the $3.9 billion payment.

The payment is the single largest the company has made to the Federal Reserve Bank of New York, and brings the total owed including principal and interest to approximately $21 billion.

Robert Benmosche, president and CEO of AIG, expressed confidence in the company's success.

"AIG is getting stronger every day. We still have more work to do, but we will finish the job and make sure we repay the American taxpayers," Benmosche said in a statement.

"Our insurance businesses are profitable; client retention rates have stabilized; and surrender rates have improved to normal levels. We are starting to see light at the end of the tunnel," he added.

Reprints Discuss this story
This is where the comments go.