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 It looks like bonuses for executives at American International Group Inc. will be the next to go. New York Attorney General
The insurer has already put
Cuomo's urging came after The Washington Post put out a report stating that AIG planned to pay out $503 million in deferred compensation to its top employees using the bailout funds. This of course came after the Federal Reserve and the U.S. Treasury restructured the government loans extended to the company in September with golden-parachute limitations and a freeze on the size of the annual bonus pool for the top 70 company executives. Under the plan AIG will get a lower interest rate, an extended repayment horizon, $40 billion from the Treasury out the $700 billion Troubled Asset Relief Program, as well as two new lending facilities with a total of $52.5 billion in order to speed up the sale of AIG's mortgage-related assets, according to The Deal's George White. AIG has already drawn down about $61 billion of the $85 billion facility, the company said on Nov. 10. Sales of the assets were originally supposed to be completed by the end of the year. So how is AIG doing with asset sales? Aflac Inc. told Bloomberg Television that he'd lost interest in buying any of AIG's units including its Japanese holdings thanks to tight debt markets and the declines in his company's shares. At the end of October, Aviva Life and Annuity Co.'s finance director Philip Scott told the Financial Times that his company was not interested in AIG's assets because "at this stage ... any price negotiations would be grossly overvalued." But there are still potential bidders out there. Here are some of the latest reports: China Banking Corp. is bidding for the consumer banking arm of Philippine American Life and General Insurance Co. SM Investments Corp, Ayala Corp., Rizal Commercial Banking Corp. and Metropolitan Bank & Trust Co. are also considering bidding for Philamlife, according to Reuters. China Life could acquire AIG's Asian operations or join forces with Prudential to acquire the assets, according to the Financial Times. PKO BP may take over AIG Bank in Poland, according to Warsaw Business Journal. American General Finance is on the block after a $535.7 million loss, according to the Evansville Courier Press. Former AIG CEO Maurice "Hank" Greenberg might consider buying AIG's Asian life insurance operations, according to a Reuters report. - Maria Woehr For more check out: AIG asset sales may happen before end of year Categories Deal Video
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