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AIG Names Aid Beneficiaries

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American International Group Inc. has listed dozens of counterparties that have been helped by U.S. government efforts to shore up its own operations.

In a report that describes the use of about $96 billion of the aid allocated from Sept. 16, 2008, to Dec. 31, 2008, AIG, New York, identifies U.S. and European banks and investment banks as the biggest indirect beneficiaries.

The Federal Reserve Bank of New York began working with AIG in September 2008 to set up Maiden Lane III L.L.C., a Delaware corporation that is using federal backing and some AIG capital to unwind credit default swaps, guaranteed investment agreement obligations, and securities lending transactions arranged by AIG’s AIG Financial Products Corp. unit and other AIG units.

Goldman Sachs Group Inc., New York, has received almost $13 billion in support as a result of the rescue efforts, AIG says.

The Goldman Sachs total includes $5.6 billion in payments relating to the company’s role as a credit default swaps counterparty, $4.8 billion in payments relating to its role as a securities lending counterparty, and $2.5 billion in credit default swaps collateral postings, AIG says.

Soci?t? G?n?rale S.A., Paris, received about $12 billion in support, Deutsche Bank A.G., Frankfurt, Germany, about $12 billion; Barclays P.L.C., London, $8.5 billion; Merrill Lynch & Company Inc., New York, $6.8 billion; Bank of America Corp., Charlotte, N.C., $5.2 billion, and UBS A.G., Zurich, Switzerland, $5 billion.

AIG also provided payments in connection with about $12 billion in GIAs, including about $1 billion for issuers in California and about $1 billion for issuers in Virginia.

AIG previously had resisted public pressure to release the names of the counterparties.

“Our decision to disclose these transactions was made following conversation with the counterparties and the recognition of the extraordinary nature of these transactions,” AIG Chairman Edward Liddy says in a statement.

Representatives for Barclays and Soci?t? G?n?rale were not immediately available for comment.

Representatives for UBS and Bank of America declined to comment on the list.

A representative for Deutsche Bank said he had “no clue” about the list.

A Goldman Sachs representative said the company’s AIG exposure “on a net basis was and is immaterial, because we were collateralized and hedged.”

A copy of the AIG press release that includes the counterparty list is available here.


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