American International Group Inc.'s Chief Executive Ed Liddy is planning to tell Congress that the beleaguered insurance company does not need more bailout money.
In testimony he is scheduled to deliver to Congress today, Liddy said the New York firm had “reduced, but not yet eliminated, the systemic risk that AIG presents to the global financial system.”
In prepared remarks to the House Committee on Oversight and Government Reform, Liddy describes a plan the company devised that would put “AIG’s troubles behind it, repay the monies that we owe the American taxpayer, and secure an outcome that helps to put the American economy back on track.”
AIG has received $182.5 billion in financial support from the government since September.
Liddy said the company was stabilizing and wouldn’t need further government support. But he cautioned that the economy would be a factor in how much time would be needed to carry out AIG’s recovery program.
“How long the plan will ultimately take will very much depend on how quickly and how strongly the global economy recovers,” Liddy said, according to the prepared remarks. The U.S. government lent AIG $85 billion in September. As market conditions worsened and losses piled up at the insurer, the government revised and expanded its loan package to AIG several times.
The package of loans now totals about $180 billion after being expanded in March when AIG reported a fourth-quarter loss of $61.7 billion, the largest quarterly corporate loss in U.S. history. AIG reported a narrower loss of $4.35 billion in the first quarter, versus $7.81 billion in the same period a year earlier.
As part of the loan package, the government has taken a roughly 80% stake in the insurance company.