AIG Repays Nearly $4 Billion on Federal Loan

Payment represents single largest cash reduction

More On Legal & Compliance

from The Advisor's Professional Library
  • Registration Requirements for Investment Advisor Representatives (IARs) When individuals launch an advisory firm, they must avoid marketing themselves or the firm as investment advisors before they are properly approved and registered.  Otherwise, they are subject to severe penalties.  
  • Trading Practices and Errors When SEC-registered investment advisors conduct annual audits of firm policies and procedures, they should pay close attention to trading practices.  Though usually not required to, state-registered advisors should look at their trading practices and revise policies that do not fully protect clients.
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.