Greenberg Wants U.S. To Lower Stake In AIG (AIG) Below 20%

Former chief of American International Group Inc. (NYSE: AIG), Maurice Greenberg has been working with Congress to reduce the government stake in the bank to below 20 percent.

Greenberg has been discussing the plans to cut the government control of the bailed out bank since the fall of 2009, according to a report in Reuters citing a source that refused to be named due to the talks not being made public.

The idea of the plan includes creating a structure for a full recovery of the bailout money from taxpayers to AIG.

According to the source, the plan has not gained any backing from the government thus far, but Greenberg has been in constant contact with AIG Chief Executive Robert Benmosche.

The plan includes extending the debt facility term of the government by more than ten years and cutting the rate on the government preferred stock by more than half to 5 percent.

Shares of AIG closed up 1 percent today to $29.63.

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