(Either backstop us or you'll be throwing even more billions down the blackholio. Besides you're only protecting your interests Federales...you wouldn't want us to blow our brains out and muss up your balance sheet would you? - AM)
By LIAM PLEVEN
JANUARY 31, 2009
Wall Street Journal
American International Group Inc. is in discussions with the government about Washington backstopping some of its troubled assets and is considering selling units through initial public offerings.
"We're looking at a broader array of recapitalization options," said Paula Reynolds, an AIG vice chairman who is overseeing the restructuring of AIG, which was rescued by the government in September with a bailout package that now totals $150 billion.
"We both realize that the environment's changing and we have to adjust to that environment," Ms. Reynolds said in an interview, referring to the federal government. She joined the company after the bailout to help the giant insurer break itself up to repay a massive federal loan.
Backstopping of assets would be similar to government guarantees on troubled assets owned by Citigroup Inc. and Bank of America Corp.
Ms. Reynolds in the interview also suggested that AIG could adjust its roster of units for sale. "We might sell some things that aren't for sale, and we might not sell some things that are for sale."