Maurice “Hank” Greenberg says bailout would be paid faster
Former AIG boss Maurice "Hank" Greenberg wants the US government to cut its stake in the insurer to less than 20%, to help attract new capital to AIG and pay back its bailout money, Reuters reports
Greenberg, AIG's largest private shareholder, has made the proposal as part of a plan to restructure AIG. He discussed his plan with members of Congress and investors and with AIG chief executive Robert Benmosche.
The plan includes extending the term of the government's debt facility by more than 10 years and halving the rate on the government preferred stock to 5%.
Keep core businesses
Greenberg wants AIG not to sell core AIG businesses, such as life insurers American International Assurance and American Life Insurance.
AIG could then attract new capital from sources such as Asian sovereign wealth funds and large US public pension funds if the government cut its stake.
Reuters said the US government was not interested in the ideas.
