US poised to return independence to AIG

The US Treasury could announce plans to return independence to insurance giant AIG as early as this week.

Bloomberg reports the Treasury may begin converting its $49bn preferred stake into common stock for sales by the first half of next year. The plans also include the completion of the sale of Alico to Metlife and the IPO of former Prudential target AIA, the Asian arm of AIG. "We have been in discussions with the U.S. Treasury, the Federal Reserve Bank of New York and trustees of the AIG Trust over the terms of the Government's exit from AIG," the insurer told Bloomberg. AIG would be required to hold at least 30% of AIA for the first year after the Asian unit's listing, according to...