AIG

US Treasury plans to sell shares of American International Group after the insurance company's stock posted a steady decline and closed near an 8-month low on Tuesday, as reported by the sources with the knowledge of the matter.

It is reported that the share sale may be about $10 billion, at the lower end of the $10 billion to $20 billion range sources had earlier forecast.

"Right now they're in a very tough spot just because the stock price has moved the way that it has," another source familiar with the situation said earlier on Tuesday.

The Congressional Oversight Panel said that the United States helped many foreign banks when pouring huge amounts of money into its economy. It noted that bailing out ailing financial firms during the 2007-09 crisis helped many foreign banks whose governments should have shared some of the burden.

As it became known Monday, AIG named former Prudential plc chief executive and experienced Asia hand Mark Tucker, as the head of its Asian life insurance business, AIA. AIG will now push ahead with an AIA (initial public offering) IPO, which bankers have said could raise about $15 billion.

The conflict between the Chairman and the CEO of AIG has finally ended. Though nobody thought that end would be so sad. The many month confrontation has resulted in resigning of Harvey Golub, Chairman of American International Group. 

Harvey Golub came to its post after the last year scandal when the federal stewards of AIG decided to separate the jobs of chairman and chief executive previously made by one person. Harvey Golub was to work in Washington representing the interests of AIG there and to ensure the transparency of the business. 

 According to some reports American International Group Inc probed five executives who threatened to resign over federal pay limits. U.S. pay czar Kenneth Feinberg has vowed to limit bonuses at AIG's financial products unit, which produced negative reaction on the part of the insurer’s employees.

According to the Wall Street Journal Sunday report, five AIG’s senior executives unveiled last week they may quit if their compensation was reduced significantly by Kenneth Feinberg.

 They indicated December 1, in written notices, that they were prepared to leave by year-end. However, two of them changed their minds over the weekend.

 AIG, which was propped up by the government with some $180 billion in taxpayer funds, has been sparring with the Obama administration's pay czar, Kenneth Feinberg, over executive compensation.

The government whacked the compensation of top executives at General Motors Co., Chrysler LLC and their financial arms Thursday.

Kenneth Feinberg, an independent official named to make sure taxpayer money isn't feathering the nests of company bigwigs, also ordered deep cuts for insurance giant AIG and financial houses Bank of America and Citigroup.

In metro Detroit, the order was a sobering reminder of Washington's involvement in the car business.

As it was reported, American International Group (AIG), also known as AIU Holdings, Inc., an American insurance corporation, has assigned Morgan Stanley and Deutsche Bank as global coordinators for the upcoming initial public offering of AIG's Asian life insurance unit. The spinoff of American International Assurance, through a public listing on an Asian stock exchange, is part of AIG's efforts to repay a government bailout of more than $180 billion.