Federal Reserve to choose AIG trustees

by David Masters

Story link: Federal Reserve to choose AIG trustees

Trustees who will oversee the US government’s stake in American International Group (AIG) are to be appointed shortly by the Federal Reserve.

Three individuals will be appointed by the US central bank to manage the government’s 80% stake in AIG.

The trustees, expected to be named within the next two weeks, will be chosen for their extensive business experience.

They will take over control of the government’s equity stake from the Fed and treasury officials who were in charge of the bailout last month.

The US government took the 80% stake in AIG when it loaned the insurer $85 billion to save it from crashing following the collapse of Lehman Brothers.

An additional loan of $38 billion was given by the government to AIG this week.

Experts at the Federal Reserve are currently working out how much money is flowing through and within the company.