AIG (AIG) Still in Fed Limbo Regarding Assets
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American International Group (NYSE: AIG) is still pondering what the Federal Reserve will decide regarding the firm's bid to buy back some of the assets it once owned, according to CEO Robert Benmosche.
"We made an offer of $15 billion back in September, which we think is fair," Benmosche said in an interview with CNBC on Wednesday. "But the Fed has not responded. Time is of the essence and we want to get this behind us."
The assets include subprime mortgage-backed securities which were once owned by the firm before the Fed took control of AIG during the economic meltdown in 2008. The firm is currently 92 percent owned by the government.
"We need a decision pretty soon," Benmosche said. "We have built up a large cash position to buy these assets and we are underperforming as a company. Having these assets would make our company worth more. It makes sense for us to own these."
Benmosche contends that the deal should be profitable for the taxpayers that bailed out AIG.
Shares of AIG are down 47 cents to $36.48 in midday market movement on Wednesday.
"We made an offer of $15 billion back in September, which we think is fair," Benmosche said in an interview with CNBC on Wednesday. "But the Fed has not responded. Time is of the essence and we want to get this behind us."
The assets include subprime mortgage-backed securities which were once owned by the firm before the Fed took control of AIG during the economic meltdown in 2008. The firm is currently 92 percent owned by the government.
"We need a decision pretty soon," Benmosche said. "We have built up a large cash position to buy these assets and we are underperforming as a company. Having these assets would make our company worth more. It makes sense for us to own these."
Benmosche contends that the deal should be profitable for the taxpayers that bailed out AIG.
Shares of AIG are down 47 cents to $36.48 in midday market movement on Wednesday.
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