AIG Private Bank acquired by Aabar Investments

by Gill Montia

Story link: AIG Private Bank acquired by Aabar Investments

American International Group Inc (AIG) has agreed to sell its AIG Private Bank subsidiary to Aabar Investments, an Abu Dhabi firm, for $254 million.

Following completion of the transaction, Zurich-based AIG Private Bank will continue providing services for high net worth individuals in Western and Eastern Europe, Asia and the Middle East.

Aabar’s chairman, Khadem Al Qubaisi, will become chairman of the renamed bank but other senior executives will remain in post.

AIG was rescued by the US Federal Reserve with an $85 billion bail out in September, only hours after the collapse of Wall Street investment bank, Lehman Brothers.

Since then it has embarked upon a restructure involving a series of disposals but was forced to return to the US central bank for a $37.8 billion top-up, in early October.

Last month AIG reported a third-quarter net loss of $24.5 billion and the US Treasury announced it would increase its stake in the group by purchasing $40 billion of preference shares.