The information below describes the New York Fed’s actions and involvement with AIG. This repository for various sources of public information on federal financial assistance extended to AIG includes timelines, press releases, Congressional testimony and financial data.
The Federal Reserve Board, with the support of the U.S. Treasury and under Section 13(3) of the Federal Reserve Act, authorizes the New York Fed to lend up to $85 billion to AIG through a revolving credit facility in return for a 79.9 percent equity interest.
Board of Governors and Treasury announce the restructuring of the government's financial support to AIG. The restructuring includes a Treasury purchase of AIG preferred shares through the Troubled Asset Relief Program (TARP), reduction of $85 billion revolving credit line to $60 billion and the creation of two limited liability companies (LLCs) to lend against AIG's residential mortgage-backed securities (RMBS) and collateralized debt obligations (CDOs).
Board of Governors and Treasury announce changes to government's financial support to AIG. This includes Treasury creating a new equity capital facility and a reduction in the Federal Reserve's revolving credit facility from $60 billion to $25 billion in exchange for preferred stock interests in two special purpose vehicles (SPVs) created to hold all outstanding common stock of American Life Insurance Company (ALICO) and American International Assurance Company Ltd. (AIA), two life insurance holding company subsidiaries of AIG.
AIG files 8-K to reflect entry into Amendment 3 of the September 22, 2008, credit agreement between AIG and New York Fed. This includes removal of the minimum 3.5 percent LIBOR rate, permits issuance of certain stock to the Treasury and includes other technical amendments.
AIG announces acceleration of steps to position AIU Holdings in a special purpose vehicle (SPV) in preparation for the potential sale of a minority stake in the business. Release includes New York Fed statement.
AIG places equity of American Life Insurance Company (ALICO) and American International Assurance Company Ltd. (AIA), two life insurance holding company subsidiaries, into special purpose vehicles (SPVs) as announced on March 2.
AIG announces closing of transactions with New York Fed to place equity of American Life Insurance Company (ALICO) and American International Assurance Company Ltd. (AIA), two life insurance holding company subsidiaries of AIG, into special purpose vehicles (SPVs).
New York Fed releases statement supporting comprehensive U.S. Government Accountability Office (GAO) review on AIG and provides AIG-related documents to Congress. New York Fed also releases and posts on its website a second statement on public disclosures of AIG concerning Maiden Lane III.
AIG announces agreement with the U.S. Department of the Treasury, the Federal Reserve Bank of New York and the trustees of the AIG Credit Facility Trust on a recapitalization plan designed to accelerate repayment of its obligations to American taxpayers. The plan expedites the full repayment and termination of the New York Fed's credit facility, simplifies the current government investment, and puts in motion the steps for the U.S Treasury's exit, including the conversion of its preferred shares into common.
AIA announces that the over-allotment option has been fully exercised in respect of approximately 1.05 billion shares, increasing the total number of shares offered and sold in its public offering to approximately 8.08 billion.
The New York Fed, AIG, the U.S. Treasury and the trustees of the AIG Credit Facility Trust close on the recapitalization announced in September, 2010. The New York Fed's assistance to AIG is repaid and terminated; the government's investment in AIG is consolidated; the U.S. Treasury's shares are converted into common equity; the Credit Facility Trust is terminated.
*As part of the close-out procedures for Maiden Lane II LLC, on August 22, 2012, the New York Fed sold eight residual securities that had been factored to zero and consequently dropped from the portfolio holdings report published by the New York Fed. There was no active notional balance associated with these positions as the securities were fully written down prior to the last ML II sale on February 28, 2012; thus, the subsequent sale of these zero-factor securities had no material impact on the net gain reported for the ML II portfolio.