Role of the Federal Reserve Bank of New York (FRBNY) in AIG:

Prior to the January 2011 recapitalization, the FRBNY was a significant creditor of AIG through the FRBNY credit facility and a holder of preferred interests in the AIA and ALICO SPVs. In addition, the FRBNY held investments in AIG-related residential mortgage backed securities (RMBS) in Maiden Lane II and AIG-related collateralized debt obligations in Maiden Lane III. As creditor, the FRBNY monitored the implementation of AIG's restructuring and divestiture plan and participated as an observer in the corporate governance of AIG. In the recapitalization, AIG repaid the FRBNY approximately $21 billion under the FRBNY credit facility and terminated the facility. AIG purchased the preferred interests in the AIA and ALICO SPVs from the FRBNY, retired approximately $6.1 billion of them and transferred approximately $20.3 billion of them to the U.S. Department of Treasury. As of March 2012, the Maiden Lane II loan has been fully repaid and the Maiden Lane III loan has been significantly reduced.

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Role of the U.S. Department of Treasury in AIG:

On January 14, 2011, AIG exchanged shares of a new Series G preferred stock and 1.655 billion shares of AIG common stock, approximately 92 percent of the common stock of AIG, for the $49.1 billion of TARP Series E and Series F preferred shares and the Series C preferred shares held by the Trust on behalf of the United States Treasury. Over time, the Treasury Department is expected to sell its shares of AIG common stock subject to market conditions. As of March 22, 2012, the Treasury Departmentís stake in AIG common stock has been reduced to 70 percent. Additionally, the Treasury Departmentís preferred interests in the AIA and ALICO SPVs have been paid in full.

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